3.1.2 The Role of Shareholders

Who is considered a shareholder?

• A person who owns at least one share in a company

• A person who works for a company

• A person who buys products from a company

• A person who manages a company

What is the main role of shareholders in a company?

• To manage the daily operations

• To provide funds

• To hire employees

• To sell products

What is an Annual General Meeting (AGM)?

• A meeting where shareholders vote on key decisions

• A meeting where employees discuss their roles

• A meeting where products are launched

• A meeting where customers give feedback

What is a dividend?

• A portion of the business's profit given to shareholders

• A type of share in the company

• A penalty for not attending meetings

• A fee for buying shares

What does it mean when shareholders have limited liability?

• They can only lose the amount they invested

• They are responsible for all company debts

• They must attend all company meetings

• They can sell their shares at any time

Why might some shareholders invest in businesses?

• To achieve a capital gain

• To avoid paying taxes

• To manage the company

• To hire employees

How are dividends paid to shareholders?

• On a per-share basis

• As a fixed annual amount

• As a percentage of total sales

• As a bonus for attending meetings

Why might someone invest in a small private limited company?

• To be involved in the running of the business

• To avoid paying taxes

• To manage the company

• To hire employees

What are some reasons shareholders might invest in a company?

• Belief in the company's social, ethical, or environmental objectives

• To avoid paying taxes

• To manage the company

• To hire employees

What is the role of venture capitalists?

• To invest in businesses with potential to be successful

• To manage the daily operations of a company

• To hire employees for a company

• To sell products for a company