Discussion Forum : Sources Of Business Finance
Question -


The term 'redeemable' is used for which of the following source of finance? 

Options:
A .   Equity shares 
B .   Preference shares
C .   Retained earnings
D .   Loans
Answer: Option B
:
B

A company may issue this type of shares on the condition that the company will repay the amount of share capital to the holders of this category after a fixed period, or even earlier at the discretion of the company.


 



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