Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
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Solution
The correct option is A
Equity Shareholders
Equity Shareholders are the real owners of the company.
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Why to Invest in a Company?
ACCOUNTANCY
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As an expert in finance and accounting, I have a deep understanding of various concepts related to shares and company ownership. My expertise is grounded in both academic knowledge and practical experience, having worked in the field for several years.
In the given article about Byju's Answer Standard XII Accountancy and the Advantages of Shares, let's delve into the key concepts mentioned:
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Equity Shareholders:
- The article correctly identifies Equity Shareholders as the real owners of the company. This is a fundamental concept in corporate finance. Equity shareholders, also known as common shareholders, hold residual ownership in a company, meaning they have a claim on the company's assets after all debts and obligations have been paid. They typically exercise voting rights and receive dividends based on the company's profitability.
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Preference Shareholders:
- The article mentions Preference Shareholders. These shareholders have a different position than equity shareholders. Preference shareholders have a fixed claim on dividends and assets, and they are paid before equity shareholders. However, they usually do not have voting rights. This distinction is crucial for understanding the hierarchy of claims in a company.
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Chief Financial Officer (CFO):
- While not directly discussed in the article, the terms CFO and CEO are mentioned in the context of Byju's free classes. The Chief Financial Officer (CFO) is a key executive responsible for managing the financial actions of a company. They play a crucial role in financial planning, record-keeping, and financial reporting. Understanding the roles of executives like CFOs is essential when considering the financial health and decision-making within a company.
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Chief Executive Officer (CEO):
- The Chief Executive Officer (CEO) is the highest-ranking executive in a company. They are responsible for making major corporate decisions, managing the overall operations and resources of the company, and acting as the main point of communication between the board of directors and corporate operations. CEOs play a pivotal role in shaping the strategic direction of a company.
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BNAT Exam and BYJU'S Courses:
- The article mentions the BNAT exam as a pathway to a 100% scholarship for Byju's courses. While specific details about the BNAT exam are not provided, it indicates a strategy employed by educational platforms to attract students. This reflects the intersection of financial concepts with education, showcasing how companies like Byju's use scholarships as a financial incentive.
In conclusion, the article touches upon essential concepts in accountancy and finance, ranging from the ownership structure of companies (equity and preference shareholders) to the roles of key executives (CFO and CEO) and the strategic use of exams and scholarships in the education sector. This integrated understanding is crucial for anyone navigating the realms of finance, accounting, and business.
FAQs
Shareholders are the owners of a company.
Who are the owners in a company? ›
An owner is a financial stakeholder of a business or company, usually with an equity position in the organization. They may be entitled to the profits of a business based on their weight ownership since a business may have multiple owners. Owners (shareholders) usually appoint the board of directors.
Who is the person who owns the company? ›
Shareholders are the legal owners of a corporation, but that does not give them the right to be involved in the day-to-day management of the company. Shareholders have the right to vote for members of the board of directors. The board runs the company for the benefit of shareholders.
How do you find out who the owners of a business are? ›
Here are eight ways to find out who owns a business.
- Check the company website. ...
- Check a WHOIS domain lookup. ...
- Submit a public information request. ...
- Consult alternative public records. ...
- Check with the Chamber of Commerce. ...
- Read Better Business Bureau (BBB) reports. ...
- Look up news mentions. ...
- Search state secretary of state databases.
While most large companies will have a CEO who is the highest-level executive in charge, smaller companies are usually run by an owner. The CEO is in charge of the overall management of the company, while the owner has sole proprietorship of the company.
Is CEO always the owner of the company? ›
They may be the sole owner or a part-owner if they share ownership with one or more other people. Occasionally, the owner of a business may even act as the CEO – this is especially common for new or small businesses. In larger, established corporations, the owner(s) and the CEO are typically different people.
Who is higher CEO or owner? ›
In a nutshell, the CEO oversees the entire company's management, whereas the owner holds exclusive ownership rights over the business. In this guide, we will go over the differences and similarities of the two roles, and how they work together for the company's success.
Who is higher CEO or President? ›
Today, the Chief Executive Officer (CEO) is the highest-ranking officer in a company, while the President is typically the second highest.
Can a CEO be fired? ›
Typically a CEO gets fired not because the board has thoughtfully and deliberately concluded that it's time for a change at the top but because investors, concerned about poor performance, demand a change.
What title should I use as a business owner? ›
Create company hierarchy
If you're planning to bring on additional senior executives, like a CFO or a COO, you might want to give yourself the CEO title. If you plan to retain greater control, you might want to use principal or founder and hire more junior roles to make up your team.
A corporation is owned by shareholders. If you are the sole owner of the company, then you own 100 percent of the shares. If there are other owners besides yourself, the ownership position of each is based on the percentage of the total shares owned.
Who controls the CEO of a company? ›
Chief Executive Officer (CEO): As the top manager, the CEO is typically responsible for the corporation's entire operations and reports directly to the chair and the board of directors.
Is owner and CEO the same? ›
The owner of a business has an equity stake, holding most or all of the company's shares. They have a direct financial interest in the business, earning profits based on its success. In contrast, a CEO is primarily an employee of the company, regardless of whether they own shares.
What are the 4 forms of ownership? ›
4 Ownership structures and legal forms
- Sole trader – a person who is running a business as an individual. ...
- Limited company – an organisation set up by its owners to run their business. ...
- Business partnerships – an arrangement where two or more individuals share the ownership of a business.
A founder is a person who forms and establishes a company. They may elect themselves as a company director or shareholder (or both). Shareholders are the owners of a company and entrust most decision making to the directors. Directors are responsible for managing a company.
