ECONOMICS

COST ACCOUNTING

COST ACCOUNTING STANDARDS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Shares
A
A unit of ownership in a corporation
B
The owners of a corporation.
Explanation: 

Detailed explanation-1: -Share is defined as unit of ownership in a company. It is one of the equal parts into which a company’s capital is divided, entitling the holder to a proportion of the profits.

Detailed explanation-2: -Shares are units of equity ownership in a corporation. For some companies, shares exist as a financial asset providing for an equal distribution of any residual profits, if any are declared, in the form of dividends. Shareholders of a stock that pays no dividends do not participate in a distribution of profits.

Detailed explanation-3: -A share is a unit of ownership delivered by a capital company. In most cases, it is a commercial company with a limited liability. Holding one of several shares – in other words, being a shareholder – means that you own a part of the company’s capital but you are not held personally liable for the company’s debts.

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