In which of the following, interest / dividend is payable even if the company does not earn profit?
A. Equity capital
B. Preference capital
C. Debentures
D. All of above
Answer: Option C
Solution(By Examveda Team)
In Debentures, interest / dividend is payable even if the company does not earn profit. No matter what happens – profit or loss, a firm needs to pay interest to its debenture holders/lenders. Only when a company makes a profit, a dividend is distributed.This Question Belongs to Commerce >> Business And Commerce
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