Sources of Business Finance · Class 11 · CBSE · Commerce Business Studies
Which of the following sources of business finance represents permanent capital that cannot be redeemed during the lifetime of the company, except in…
Practice question from Sources of Business Finance (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
easy · MCQ · Q-97373A
Which of the following sources of business finance represents permanent capital that cannot be redeemed during the lifetime of the company, except in the case of liquidation?
- A.Debentures
- B.Equity sharesCorrect answer
- C.Public deposits
- D.Bank overdraft
Solution
Equity shares represent ownership capital and form the permanent source of capital for a company. Unlike debt, equity shares are not refunded during the lifetime of the company.
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