Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A) : Equity shares do not carry fixed rate of dividend, and they are the ultimate risk bearer.
Reason (R) : Equity shareholders get dividend from residual part of profits and in the case of winding-up of the company, invested money will be refunded at the last.
In the context of the above statements, which one of the following is correct?
1
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2
Both Assertion (A) and Reason (R) are true, and Reason (R) is the not correct explanation of Assertion (A).
3
Assertion (A) is true, but Reason (R) is false.
4
Assertion (A) is false, but Reason (R) is true.