Day: April 24, 2020

A person who acquires shares in a company is known as . . .?

Select ONE answer:

1. a shareholder.
2. a director.
3. a partner.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct – A person may be a director of a company and yet not own any shares in it.
3. Not correct – The term ‘partner’ is confined to partnerships. Two people may go into business together as business partners but if they set up a company and become shareholders and / or directors then the latter terms should be used when referring to them.
4. Not correct

 

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