Question

Who are the real owners of a company?

• A. Government
• B. Board of Directors
• C. Equity shareholders
• D. Debenture holders

Hint:

Equity shareholders are considered the real owners of a company because they bear the risks and enjoy the rewards of the business.

Answer 1

The Correct Option is C

Step 1: Understanding ownership in a company.
The real owners of a company are its equity shareholders. They invest in the company and have a residual claim on its assets and profits after all liabilities, including payments to debenture holders and creditors, are settled.

Step 2: Identifying the role of equity shareholders.
Equity shareholders have voting rights in the company, allowing them to influence major decisions. This ownership stake makes them the real owners of the company. Other entities, such as the Board of Directors or debenture holders, do not possess ownership rights.