Question

Explain Corporate Equity Concepts.

Answer 1

Equity in a corporate organisation means the stake of its members. It form a major part of the net worth of the company. The holders of the equity are entitled to voting rights in proportion to the shares held by them. They are also entitled to received dividend out of the earnings of the company. Equity is a very vital resource of the organisation as it reflects the wealth of the company. If the value of the equity increase, the stakeholders wealth will also increase and more investors will be interest in investing in the company.

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