COST ACCOUNTING
INFORMATION FOR DECISION MAKING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of these sources of finance may involve the payment of a dividend?
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Debt factoring
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Loans
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Overdrafts
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Share capital
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Explanation:
Detailed explanation-1: -Share capital is the money a company raises by issuing common or preferred stock. The amount of share capital or equity financing a company has can change over time with additional public offerings. The term share capital can mean slightly different things depending on the context.
Detailed explanation-2: -Equity shares are long-term financing sources for any company. These shares are issued to the general public and are non-redeemable in nature. Investors in such shares hold the right to vote, share profits and claim assets of a company.
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