Business Studies

Debentures are _______ charge funds and do not participate in ________ of the company.


ANSWER

fixed, profit


SOLUTION
Debentures are fixed charge funds i.e they are to be returned on a fixed interest and not as per the profits earned by the company. Hence they do not participate in the profit share of the company.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 198
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
The ______________ of a business is a key determinant.
  • A. cost
  • B. financial strength
  • C. legal status
  • D. control

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
Which one is more appropriate for cost of retained earnings?
  • A. Weighted Average Cost of Capital.
  • B. Opportunity cost to the firm.
  • C. Expected rate of return by the investor.
  • D. None of the above

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
As equity capital stands last in the list of claims, it provides a cushion for __________.
  • A. Debtors
  • B. Creditors
  • C. Owners
  • D. Customers

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Subjective Medium
Why business concerns require short term finance?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
If the stock velocity is 6, cost of goods sold is Rs.54,000 and closing stock is Rs.10,000 the opening stock is __________.
  • A. Rs. 9,000
  • B. Rs. 10,000
  • C. Rs. 12,000
  • D. Rs. 18,000
  • E. Rs. 8,000

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer