ESE 2021Q97
Q: Statement (I): Issue of shares is the most common method especially to raise long-term funds. Statement (II): The equity shareholders are residual owners who have restricted claim on income as dividend.
(a)Both Statement (I) and Statement (II) are individually true and Statement (II) is the correct explanation of Statement (I)
(b)Both Statement (I) and Statement (II) are individually true but Statement (II) is NOT the correct explanation of Statement (I)
(c)Statement (I) is true but Statement (II) is false
(d)Statement (I) is false but Statement (II) is true
Correct Answer: (a)
Detailed explanation coming soon.