Question

▪Heya Mates▪
Ques: Why shares are called owners fund? ​

Answer 1

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Following are the reasons due to which equity shareholders are called owners of the company.

1) Shareholders have a right to vote in the meetings of the company for various decisions.

2) Shareholders do not get fixed returns or interest. Rather, they receive dividends from the net profits of the company.

3) On liquidation, they are repaid after all the creditors of the company.

Answer 2

Answer:

Following are the reasons due to which equity shareholders are called owners of the company.

1) Shareholders have a right to vote in various meetings.

2) They do not get fixed returns or interest.

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