Question

It is permanent source of capital and is not redeemed during the life of the company. Jince drafitas et
28. Identify the source of finance highlighted in the following cases.
a.
b. It facilitates the purchase of goods and services without making immediate payment.
C. In case of winding up of the company, the capital is refunded after payment of debentures but
d. This source put a permanent obligation on the company to pay interest every year irrespective of
profits.
e. Their holders enjoy right to vote and control the company.
f. This source involves ploughing back of profit.
g. This source has characteristics of both equity shares and debentures.
h. It is the cheapest source of permanent financing.​

Answer 1

Answer:

a equity share capital  

b trade credit  

c preference share capital  

d debentures  

e equity share capital  

f retained earnings/ reserves

g preference share capital

h retained earnings/ reserves

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