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Direction: There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given below
Assertion (A): Equity shares are those shares which are not preference shares.
Reason (R): Equity shares are the least issued class of shares and carries the minimum risks and rewards of the business.
  • a)
    Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A)
  • b)
    Both Assertion (A)and Reason (R)are true, but Reason (R) is not the correct explanation of Assertion (A)
  • c)
    Assertion (A) is false, but Reason (R) is true
  • d)
    Assertion (A) is true, but Reason (R) is false
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Direction:There are two statements marked as Assertion (A) and Reason ...
Explanation:

  • The Assertion (A) is true because equity shares are those shares that do not carry any preferential rights such as fixed dividend or preference in repayment of capital.

  • The Reason (R) is false because equity shares are the most common class of shares and carry higher risks and rewards compared to preference shares.

  • Equity shareholders are the owners of the company and have the right to vote, participate in the company's management and receive dividends from the profits of the company.

  • Equity shares are considered as the riskiest investment option because the dividend payment is not fixed and depends on the company's profits.


Therefore, Option D is the correct answer.
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Community Answer
Direction:There are two statements marked as Assertion (A) and Reason ...
Equity shares are the most commonly issued class of shares and carries the maximum risks and rewards of the business.
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Direction:There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given belowAssertion (A): Equity shares are those shares which are not preference shares.Reason (R): Equity shares are the least issued class of shares and carries the minimum risks and rewards of the business.a)Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A)and Reason (R)are true, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is false, but Reason (R) is trued)Assertion (A) is true, but Reason (R) is falseCorrect answer is option 'D'. Can you explain this answer?
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Direction:There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given belowAssertion (A): Equity shares are those shares which are not preference shares.Reason (R): Equity shares are the least issued class of shares and carries the minimum risks and rewards of the business.a)Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A)and Reason (R)are true, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is false, but Reason (R) is trued)Assertion (A) is true, but Reason (R) is falseCorrect answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Direction:There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given belowAssertion (A): Equity shares are those shares which are not preference shares.Reason (R): Equity shares are the least issued class of shares and carries the minimum risks and rewards of the business.a)Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A)and Reason (R)are true, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is false, but Reason (R) is trued)Assertion (A) is true, but Reason (R) is falseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction:There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the appropriate option from the options given belowAssertion (A): Equity shares are those shares which are not preference shares.Reason (R): Equity shares are the least issued class of shares and carries the minimum risks and rewards of the business.a)Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A)and Reason (R)are true, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is false, but Reason (R) is trued)Assertion (A) is true, but Reason (R) is falseCorrect answer is option 'D'. Can you explain this answer?.
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