Question : Shareholders are :-
Option 1: Customer of the company
Option 2: Owners of the company
Option 3: Creditors of the company
Option 4: None of these
Correct Answer: Owners of the company
Solution :
Answer = Owners of the company
A share capital is divided into units called shares. The owners of the shares are known as members or shareholders. Shareholders are the owners of the company, but insolvency or death of a member does not affect the continuity of the company, i.e. the company continues even if a member becomes insolvent or dies. Hence, the correct answer is option 2.
Question : Shareholders are the _______of the company.
Option 1: Real owners
Option 2: Fake owners
Option 3: Creditors
Option 4:
All of the above
Question : --------------------invest their savings in the enterprise.
Option 1: Creditors
Option 2: Management
Option 3: Shareholder and owners
Option 4: All of the above
Question : What will be the effect on the current ratio when cash payments are made to its creditors?
Option 1: It will decrease
Option 2: It will increase
Option 3: No change
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