Q: Which one of the following is the advantage of an 'equity capital'?
(a)Dividends paid by a company are not tax deductible
(b)Equity holders expect greater return as they undertake more risk
(c)Equity shares are not repayable to the shareholders as these are nonrefundable
(d)Issue of equity shares also result in dilution of control of the company
Correct Answer: (c)
The correct answer is (b) 'Equity holders expect greater return as they undertake more risk'. This question from the Indian Economy domain tests knowledge of Financial Markets & Capital Markets.