Question

Equity shareholders get the rights in the company for

• A. Vote
• B. Purchase
• C. Sell
• D. None of these

Hint:

Equity shareholders have the right to vote on company matters, such as electing the board of directors and major decisions.

Answer 1

The Correct Option is A

Step 1: Understanding equity shareholder rights.
Equity shareholders are the owners of the company and are given voting rights. They can influence major decisions such as electing the board of directors, mergers, or other significant changes.
Step 2: Analyzing the options.
(A) Vote: Correct. Equity shareholders have the right to vote in the company.
(B) Purchase: Incorrect. Shareholders cannot purchase additional rights automatically; purchase refers to buying more shares, not rights.
(C) Sell: Incorrect. Selling shares does not grant additional rights; it only transfers ownership.
(D) None of these: Incorrect. Voting is a right that shareholders possess.
Step 3: Conclusion.
The correct answer is (A) Vote, as equity shareholders are given voting rights in the company.