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: (c)
The correct answer is (a) 'Both Statement (I) and Statement (II) are individually true and Statement (II) is the correct explanation of Statement (I)'. This question from the Indian Economy domain tests knowledge of Financial Markets & Capital Markets.