Long-Term Sources of Business Finance — Important Questions
Telangana Open School (TOSS) · Class 12 · Business Studies
44 important questions from Long-Term Sources of Business Finance for Telangana Open School (TOSS) Class 12 Business Studies, with answers.
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Important Questions from Long-Term Sources of Business Finance
What are shares called when they do not have any preferential rights?
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Equity shares
Equity shares do not have any preferential rights in terms of dividend or repayment of capital. They are also known as ordinary shares.
Who are the real owners of a company?
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Equity shareholders
Equity shareholders are considered the real owners of the company because they bear the highest risk and have voting rights.
Which source of finance does not require repayment during the lifetime of the company?
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Equity shares
Equity share capital is not required to be repaid during the life of the company. It is returned only at the time of winding up.
Dividend on equity shares is paid only if the company has:
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Sufficient profits
Dividends on equity shares are not fixed and are declared only when the company earns enough profits.
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