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The type of business finances that entitles the holder to a fixed rate of dividend...

Economics
JAMB 2020

The type of business finances that entitles the holder to a fixed rate of dividend is?

  • A. preference stock
  • B. common stock
  • C. debentures
  • D. bank loan
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Correct Answer: Option C
Explanation

A debenture is a long-term debt security issued by a company and secured against assets, to raise capital for a business. The holder of a debenture is entitled to a fixed rate of interest at the maturity of the debt.


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Project Topics and Materials, Post-UTME past questions - Download now or upload yours to get paid
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts