WAEC Commerce 1999 Question 7

Question 7

Business Finance

A public limited company wishing to obtain more capital may have to

  1. A.apply for subvention
  2. B.buy treasury bills
  3. C.buy second-hand securities
  4. D.issue debentures
Show the answer and explanation

Answer: D (issue debentures)

Explanation

Issuing debentures (or more shares) raises long-term capital.