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They are known as creditorship securities. - Commercial Studies

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Question

They are known as creditorship securities.

Options

  • Preference shares

  • Debentures

  • Equity Shares

  • Loans from commercial banks

MCQ
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Solution

Debentures

Explanation:

Debentures are a company's borrowed funds. Because debenture holders are the company's creditors, they are known as creditorship securities. Debenture capital may, therefore, be called debt capital.

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Chapter 10: Sources of Finance - EXERCISES [Page 169]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 10 Sources of Finance
EXERCISES | Q 20. | Page 169
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