Download App

Sources of Business Finance — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMSources of Business Finance2 Marks
Question
"As a financial advisor, what advice would you give your client on choosing between equity shares and preference shares? Provide a logical explanation."
✓

Answer

Equity shares offer higher returns and voting rights but come with higher risk and uncertain dividends. Preference shares provide fixed dividends with priority over equity but have limited growth and no voting rights. Choose equity shares for growth and risk tolerance, and preference shares for stable income and lower risk.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "2 Marks Each" from Sources of Business Finance→Sources of Business Finance — all question types→OCM STD 11 Commerce question papers→Gujarat Board STD 11 Commerce question papers→Gujarat Board question paper generator→

Similar questions

Why does a retail trader succeed in satisfying customers?
→
Explain Credit Card.
→
Why inter- banking transactions are carried out ?
→
What is the insurance of fire ?
→
Why is Co-operative Society called 'a training school of democracy' ?
→
"Public Sector maintains social justice." - Explain.
→
Landlord sells house and makes profit yet I is not called business why? Business is a continuous activity. “ Discuss the statement. Business is a Continuous.
→
The emergence of joint stock company is due to the limitations of which type of business form ?
→
Give two examples of non-financial transactions that occur in e-banking.
→
How mush compensation. Insurance company pays to the insurance policy holder if he/she makes loss?
→