The type of business finances that entitles the holder to a fixed rate of dividend...
ECONOMICS
JAMB 2003
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
Correct Answer: C. debentures
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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