Which statement is NOT true about equity shareholders?
A: They are owners of the business.
B: They are given first priority while paying dividends.
C: They have a right to vote on business matters.
D: They receive dividend only if the business makes profits.
E: They hold ordinary shares and not preference shares.
Stacey Warren - Expert brainly.com
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remembering pref shares are like special shares in one sense
i would agree
pref shareholders get paid before normal equity but they have limited right to dividends, usually a fixed coupon, and often limited voting rights
so its c
C is ambiguous
they have votes that pertain to the business, eg remuneration for board. but they meet once a year and are not involved in day to day decisions.
so C is partly true but mostly not true
B however is not true if there are other types of equity holders, such as prefs who get paid first.
not a very well worded question