📚 CBSE Grade-10 Study Guide Open in the Study Guide single page app →
Home › Financial Market Management

Financial Market Management — CBSE Class 10 board question

Q1. [1]
Read the following statements Assertion (A) and Reason (R) and choose the correct option from those given below : Assertion (A) : Equity shareholders are supposed to be the owners of the company. Reason (R) : Equity shareholders have a right to vote in the Annual General Meeting for passing any resolution. Options :
  1. (A) Both (A) and (R) are true and (R) is the correct explanation of (A).
  2. (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
  3. (C) (A) is true, but (R) is false.
  4. (D) (A) is false, but (R) is true.
Previously asked in CBSE board exam
2025 92 Q4 (vi)
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer

(A) Both (A) and (R) are true and (R) is the correct explanation of (A).

Equity shareholders are owners of the company, and their voting rights in the AGM to pass resolutions is precisely what establishes this ownership status.

Explanation

The right to vote in the AGM is the key feature that distinguishes equity shareholders as owners — they can influence company decisions. This voting right directly explains why they are considered owners, making (R) the correct explanation of (A). Examiners expect students to identify the logical link between the assertion and reason, not just whether both are true.

If a question refers to an image, map, graph or diagram that is not shown here, open the Study Guide single page app, go to Library and find the actual CBSE question paper. The original papers are also available on the CBSE website: cbse.gov.in.
Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.