Emarconstruction Ltd. does the construction work of buildings, roads and bridges. The company has been earning good profits for the last many years. The company expanded its business, for which it needed additional capital. The company’s Financial Manager, Mr. Saleem Balochi decided to issue Debentures in order to arrange funds. The main reason for choosing this source was that the profit being earned on it was such which was not to be availed on Equity shares and Preference shares. The company was running a number of construction works. One of the buildings was nearing completion, when the sudden tremors of the earthquake reduced it to a pile of rubble. The company suffered a great loss. This company has outsourced its advertising activity to another company. The company is very considerate towards its employees and gives them every possible facility.
a)Which type and category of industries does this company belong to?
b)What exclusive advantage was the company earning by issuing Debentures?c)Which particular cause of business risk is the occurrence of Earthquake?
d)Explain the type ‘Participating Preference Shares’.
Answers
Answer:
MVT Construction Pvt . Ltd . Deals in constructing building , bridges , roads and dams by using cement , steel , bricks and wood . There are 1000 employess in all working in this company . The managing director of the company , Mr . Shyamsunder , takes full care of the quality of work done. Recently , the company got a contract of constructing five big duildings , two bridges , one long road and one dam . The company has got a special division also , which owns one hundred trucks . these trucks are used for transpoting goods on hire . This division is working quite successfully under the supervision of the divisional manager . Radhika Dasi. Identify and state two types of industrial activities from the above para by quoting the lines .
Explanation:
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