Home › CBSE Class 11 (Commerce) › Business Studies › Sources of Business Finance › Debenture issue suits a company whose sales and …
Debenture issue suits a company whose sales and earnings are how?
AHighly volatile
BSteadily falling
CQuite uncertain
DRelatively stable
Answer & Solution
Correct answer: D. Relatively stable
Fixed interest must be paid regardless, so stable sales and earnings suit debenture financing.
Related questions
Which is true of the choice of a source of funds?Short-term financing mostly funds which kind of asset?Besides finance, development institutions also provide what?Financial institutions mainly meet which type of requirements?Government financial institutions are also called what?Before sanctioning a loan, a commercial bank requires the borrower to do what?A bank loan does not need which formality?A merit of bank loans is that business secrecy is what?