Multiple choice

Directions: Choose the correct option for the given question: Equity shares are entitled to dividend at a fixed rate.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Equity shareholders are the residual owners of a company. Dividends on equity shares are paid only after preference dividends are met and are not fixed; they depend on the company's profits and board decisions.

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