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Question
The term 'redeemable' is used for ______.
Options
Preference shares
Debentures
Equity shares
Public deposits
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Solution
The term 'redeemable' is used for preference shares.
Explanation:
These preference shares can be refunded either on the expiry of the specified period or at the company's option. The Companies Act requires preference shares to be repayable within 20 years from the date of issue.
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