Question : Questions : Different Sources of Finance
Statement 1: Equity shares provide fixed dividends to shareholders.
Statement 2: Equity shareholders do not have voting rights.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are false.
Solution : The correct answer is (d) Both statements 1 and 2 are false.
Statement 1 is false. Equity shares do not provide fixed dividends to shareholders. The amount of dividends paid to equity shareholders is determined by the board of directors and is typically dependent on the company's profits.
Statement 2 is also false. Equity shareholders have voting rights in the company. They can vote on important company matters, such as the election of directors and the approval of major corporate actions.
Therefore, both statements 1 and 2 are false.
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