Business Studies

The merit(s) of public deposits is/are ______________________.


ANSWER

All of the above


SOLUTION
Public deposits refers to the unsecured securities which is invited from the public. It is mainly used to finance the working capital of the company. The merits of public deposits are:
a) Cost of public deposits is generally lower than the cost of borrowings.b) Public deposits do not usually create any charge on the assets of the company.
c) As the depositors do not have voting rights, the control of the company is not diluted.
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Single Correct Medium Published on 18th 08, 2020
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