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WAEC Commerce 2019 Question 46

Question 46

Business Finance

A source of capital to a public company which attracts a fixed rate of interest is

  1. A.an ordinary share.
  2. B.a subvention.
  3. C.a debenture.
  4. D.an overdraft.
Show the answer and explanation

Answer: C (a debenture.)

Explanation

Debentures are long-term loans to a company that earn a fixed rate of interest.