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JAMB Economics 1979 Question 23

Question 23

Business Organisations

Which of the following types of capital is not rewarded by means of dividends?

  1. A.Ordinary shares
  2. B.Preference shares
  3. C.Cumulative preference shares
  4. D.Participating preference shares
  5. E.Debentures.
Show the answer and explanation

Answer: E (Debentures.)

Explanation

Debenture holders are lenders and receive fixed interest, not dividends.