Preference shareholders are not owners of the company (True/ False)
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The answer is true.
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0
The answer is true and the reason is explained below.
Explanation:
- There are different types of shareholders depending on their ownership and control.
- Equity shareholders are the owners of the company and they have the right to question the management.
- They can be promoted as the Promotors and Institutional investors.
- Preference shareholders have no right to question the management of the company.
- They have the right to receive the dividend before payment to equity shareholders.
- Debenture shareholders are not the owners but the creditors of the company.
- They receive interest income instead of dividends.
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