ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a fixed value share with a fixed value issued by businesses?
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Trade credit
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Long term bank loan
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Leasing
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Debenture
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Explanation:
Detailed explanation-1: -Debentures are unsecured debt instruments issued by businesses to raise capital funding, and with more complex structuring provisions than fixed deposits. The debenture may include fixed or floating interest, and they may be either convertible or nonconvertible.
Detailed explanation-2: -Companies use debentures as fixed-rate loans and pay fixed interest payments. However, the holders of the debenture have the option of holding the loan until maturity and receive the interest payments, or convert the loan into equity shares.
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