Multiple choice

The part of profit or other surplus of a company distributed proportionately among shareholders is called

  1. preference share

  2. ordinary share

  3. face value

  4. dividend

  5. equity share

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale so as to raise capital for the company.