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

Correct Answer: Debentures

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.
Bissoy MCQ
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