ECONOMICS

COST ACCOUNTING

INFORMATION FOR DECISION MAKING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which one of these sources of finance may involve the payment of a dividend?
A
Debt factoring
B
Loans
C
Overdrafts
D
Share capital
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.

There is 1 question to complete.