Which of the following securities proves a burden on finances of the company, when company is not earning profits?
A. Equity shares
B. Preference shares
C. Redeemable preference shares
D. Debentures
Answer: Option D
Solution(By Examveda Team)
Debentures proves a burden on finances of the company, when company is not earning profits. Debenture put a permanent burden on the earnings of a company. Therefore, there is a greater risk when the earnings of the company fluctuate.This Question Belongs to Commerce >> Business And Commerce
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