Equity shareholders are..................of the company:

Equity shareholders are the owners of the company.

When a person purchases equity shares of a company, they acquire ownership stake in that company. The more shares they hold, the greater their ownership percentage.

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Key characteristics of equity shareholders as owners:

• They have voting rights in company decisions

• They elect the Board of Directors who manage the company

• They share in the profits through dividends (when declared)

• They have the right to company's assets in case of liquidation (after settling all other claims)

• They bear the risk of business - if company makes profit, they benefit; if it makes loss, they bear it

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Why other options are incorrect:

Creditors are those who lend money to the company (like debenture holders, bondholders, or banks). They have a fixed claim on the company and must be paid regardless of profit or loss.

Customers are external parties who purchase goods or services from the company.

Debtors are those who owe money to the company for goods sold or services provided on credit.

The fundamental difference is that equity shareholders have ownership rights and residual claims, whereas creditors have a contractual claim that must be satisfied before shareholders receive anything.