JAMB Commerce 1997 Question 13

Question 13

Business Finance

One type of investment that has a variable income is

  1. A.debentures
  2. B.preferred shares
  3. C.government bonds
  4. D.ordinary shares.
Show the answer and explanation

Answer: D (ordinary shares.)

Explanation

Ordinary shareholders get dividends that rise and fall with profits; debentures, bonds and preference shares pay fixed rates.