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WAEC Commerce 2004 Question 48

Question 48

Business Finance

Which of the following sources of capital to a business requires mortgaging a specific asset?

  1. A.overdraft
  2. B.ordinary shares
  3. C.fixed debenture
  4. D.trade credit
Show the answer and explanation

Answer: C (fixed debenture)

Explanation

A fixed debenture is secured by a charge on a specific asset.