Question

6. Which of the following statement does not hold true in case of equity shares?

(a) It is suitable for cautious investors

(b) It is a permanent source of capital

(c) It does not create a charge on the assets of the company

(d) The liability of the equity shareholders is limited.​

Answer 1

Answer:

a.... .......

Explanation:

.........................

Answer 2

The correct option is (a).

Explanation:

• Ordinary shares are another name for equity shares.
• They are a type of fractional or part ownership in which the shareholder, as a fractional owner, bears the greatest amount of company risk.
• Equity shareholders are members of the corporation and have voting rights.
• Equity shares are a critical source of long-term financing.
• Equity shares indicate a company's ownership, and the cash produced via the issuance of such shares is known as ownership capital or owner's funds. They serve as the cornerstone for the establishment of a business.