Question
__ -are called common shares which represent the risk capital of a business and form the cornerstone of a business' financial structure. These give the owner the right to one vote-through the possession of each unit, at a company's shareholder's meeting. (Select the missing word below to complete the sentence) Ordinary shares Preference shares Premium shares Reserved shares
Answer
4.2
(193 Votes)
Jenson
Veteran · Tutor for 10 years
Answer
Ordinary shares
Explanation
## Step1:The question is a chategory-wise classification question, which asks you to select the correct term from the given choices, that will accurately complete the statement in the text.## Step2:Understanding the giiven statement: It describes certain type of shares which not only pose a risk capital for the company but also form an integral and substantial element of a business's financial structure. Furthermore, each of these units possess the right to one vote at a shareholder's meeting.## Step3:With this information, inspecting each of the given options, you can discern that the described roles and rights very much align with what is typically associated with 'Ordinary Shares'. Ordinary shares, also called common shares, entitled the holder to vote at shareholder's meetings and presents a level of risk as their prices fluctuate with the performance of the company.