Advertisements
Advertisements
Question
In which source of finance company has to give fixed rate of interest?
Options
Shares
Debentures
Retained earnings
None of these
MCQ
Advertisements
Solution
Debentures
Explanation:
Debentures are debt instruments obliging the company to pay a fixed rate of interest to debenture‑holders (creditors) regardless of profits; they lack voting rights, so they provide fixed‑rate finance.
shaalaa.com
Is there an error in this question or solution?
