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WAEC Commerce 1991 (August) Question 72

Question 72

Business Finance

Equity interest in a company is represented by

  1. A.preference shares
  2. B.retained earnings
  3. C.debentures
  4. D.bonds
  5. E.ordinary shares
Show the answer and explanation

Answer: E (ordinary shares)

Explanation

Ordinary shareholders (equity) own the company and bear the most risk.