Question

…………… source of finance is preferred by investors who want fixed income at lesser risk
(a) Debentures (b) commercial paper
(c)Public Deposits (d) lease Financing

Answer 1

Answer:

A) Debentures☺

Answer 2

Debentures are a source of finance is preferred by investors who want fixed income at lesser risk.

• Debentures provide great security to investors.
• The debenture holders do not interfere in the management of the company.
• The investors get fixed and regular interest, whether the company earns profit or not.