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What is the primary difference between equity shares and preference shares?
  • a)
    Equity shareholders have no voting rights, while preference shareholders do.
  • b)
    Equity shareholders receive a fixed rate of dividend, while preference shareholders do not.
  • c)
    Equity shareholders have a priority claim on the company's assets, while preference shareholders do not.
  • d)
    Equity shareholders bear the highest risk in the company, while preference shareholders have lower risk.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What is the primary difference between equity shares and preference sh...
Equity shareholders are the true risk bearers in a company, as they have no fixed dividend and a higher level of risk compared to preference shareholders.
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What is the primary difference between equity shares and preference shares?a)Equity shareholders have no voting rights, while preference shareholders do.b)Equity shareholders receive a fixed rate of dividend, while preference shareholders do not.c)Equity shareholders have a priority claim on the company's assets, while preference shareholders do not.d)Equity shareholders bear the highest risk in the company, while preference shareholders have lower risk.Correct answer is option 'D'. Can you explain this answer?
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What is the primary difference between equity shares and preference shares?a)Equity shareholders have no voting rights, while preference shareholders do.b)Equity shareholders receive a fixed rate of dividend, while preference shareholders do not.c)Equity shareholders have a priority claim on the company's assets, while preference shareholders do not.d)Equity shareholders bear the highest risk in the company, while preference shareholders have lower risk.Correct answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the primary difference between equity shares and preference shares?a)Equity shareholders have no voting rights, while preference shareholders do.b)Equity shareholders receive a fixed rate of dividend, while preference shareholders do not.c)Equity shareholders have a priority claim on the company's assets, while preference shareholders do not.d)Equity shareholders bear the highest risk in the company, while preference shareholders have lower risk.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary difference between equity shares and preference shares?a)Equity shareholders have no voting rights, while preference shareholders do.b)Equity shareholders receive a fixed rate of dividend, while preference shareholders do not.c)Equity shareholders have a priority claim on the company's assets, while preference shareholders do not.d)Equity shareholders bear the highest risk in the company, while preference shareholders have lower risk.Correct answer is option 'D'. Can you explain this answer?.
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