Question

The deposits that are raised by organization directly from the public are known as:
(a) Lease financing (b) Debentures (c) Public deposits (d) Retained earnings

Answer 1

Answer:

(b)debentures is the answer for this question

Answer 2

The deposits that are taken by the organization directly from the public are known as Option C public deposits.

Explanation:

• The correct answer is option C Public Deposits.
• Rates of the interest are generally higher than that of bank interest.
• The amount taken by the way of public deposit is generally used to meet the requirement of the working capital.
• It fulfills the both short and medium term financial requirements.
• Public deposits generally don't charge the assets of the company, hence assets can be utilized to raise the loan for the business transactions.
• It is an unreliable source of the finance.