Q159
A project, which may not add to the existing profits, should be financed by __________.
A.
debentures
B.
preference share capital
AnswerC.
equity capital
D.
public deposits
Answer: Option B
Solution
Answer: Option B
Solution:
A project, which may not add to the existing profits, should be financed by preference share capital. Preference shares are shares in a company that are owned by people who have the right to receive part of the company's profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the company fails and has to close.