Consider the following statements:
Assertion (A): Rights shares are given to equity shareholders in proportion to their share capital in the company.
Reason (R): Equity shareholders assume the greatest risk in company finance.
Now select your answer:

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

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

C. A is true, but R is false

D. A is false but R is true

Answer: Option A