KnowledgeBoat Logo
|

Mathematics

Assertion (A): Income of a shareholder is directly proportional to the number of shares he buys.

Reason (R): Income of a shareholder = Face value×No. of shares×Rate of dividend100\text{Face value} \times \dfrac{ \text{No. of shares} \times \text{Rate of dividend}}{100}

  1. Both A and R are true, and R is the correct explanation of A.

  2. Both A and R are true, but R is not the correct explanation of A.

  3. A is true, but R is false.

  4. A is false, but R is true.

Shares & Dividends

3 Likes

Answer

Income of a shareholder is directly proportional to the number of shares he buys. This is true because the more shares one holds, the greater the total dividend received. So, income increases with the number of shares.

So, Assertion (A) is true.

By formula,

Income=Face value×No. of shares×Rate of dividend100\text{Income} = \text{Face value} \times \text{No. of shares} \times \dfrac{ \text{Rate of dividend}}{100} \\[1em]

So, Reason (R) is also true.

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

Hence, Option 1 is the correct option.

Answered By

3 Likes


Related Questions