________ is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

Quasi-equity debt security

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Loan security

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Deemed security

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Quasi-equity debt security
Quasi-equity debt security is a financial vehicle that combine the properties of equity and debt.It is technically a form of debt,but it has an important characteristics of equity investment.

Suggest Corrections

Similar questions

Q. _______is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

Q. The amount of debt, equity share capital, preference share capital are __________ by financial decisions, which is a part of financial management.

From the following, calculate (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary Ratio.

	Rs
Equity Share Capital	75,000
Preference Share Capital	25,000
General Reserve	45,000
Accumulated Profits	30,000
Debentures	75,000
Sundry Creditors	40,000
Outstanding Expenses	10,000

___ refers to the proportion of debt and equity used for financing the operations of a business.

The following particulars are extracted from the Balance Sheet of Goodwill Enterprises Ltd. as at 31st March, 2018 :

$\begin{matrix} Particulars & Rs. Equity Share Capital & 3,00,000 10 % Preference Share Capital & 1,20,000 Capital Reserve & 60,000 Profit & Loss Balance & 1,20,000 12 % Debentures & 50,000 10 % Mortgage Loan & 1,50,000 Current Liabilities & 2,80,000 Non Current Assets & 4,80,000 Current Assets & 6,00,000 \end{matrix}$

Showing the full working, calculate the following ratios :

(i) Debt-Equity Ratio

(ii) Proprietary Ratio

(iii) Interest Coverage Ratio

Net Profit after interest and tax amounted to Rs. 63,000

Rate of Income Tax was 50%

Join BYJU'S Learning Program

________ is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

The correct option is B Quasi-equity debt securityQuasi-equity debt security is a financial vehicle that combine the properties of equity and debt.It is technically a form of debt,but it has an important characteristics of equity investment.

The correct option is B Quasi-equity debt security
Quasi-equity debt security is a financial vehicle that combine the properties of equity and debt.It is technically a form of debt,but it has an important characteristics of equity investment.