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JAMB Economics 2002 Question 35

Question 35

Business Organisations

External finance for a limited liability company is mainly sourced through

  1. A.the leasing of equipment
  2. B.the issuing of shares
  3. C.trade credits
  4. D.bank loans
Show the answer and explanation

Answer: B (the issuing of shares)

Explanation

A limited company raises most of its outside capital by selling shares to the public or to investors.