___ is the riskless source of finance, as there is no obligation on the company to pay dividends or repay the capital of the shareholders, whether they earn a profit or not.

Debt

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Asset

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Capital

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Equity

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Solution

The correct option is D
Equity

Equity is the riskless source of finance, as there is no obligation on the company to pay dividends or repay the capital of the shareholders, whether they earn a profit or not.

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Similar questions

Which shareholders are given priority over the other shareholders for dividend or repayment of the capital of the company?

Q. Assertion :Preference shares capital is a more costly source of finance than debentures for profit-earning companies. Reason: Preference dividend is not a charge against profit under the Income Tax Act.

A company's earning before interest amd tax is Rs. 7 lac. It pays 10% interest on its debt. Total investment of company is Rs. 50 lac. Advise company whenever it should included debt or equity to raise its capital.

Q. A company's earnings before interest and tax is Rs. 7 lakh. It pays 10% interest on its debt. Total investment of company is Rs. 50 lakh.
(a) Advise company whenever it should include debt or equity to raise its capital.
(b) Name the concept related to this.
(c) Will the company's decision to raise funds from debt or equity will change if company's EBIT becomes 3 lakh.

The cheapest source of finance is

(a) debenture

(b) equity share capital

(d) retained earning

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___ is the riskless source of finance, as there is no obligation on the company to pay dividends or repay the capital of the shareholders, whether they earn a profit or not.

The correct option is D Equity Equity is the riskless source of finance, as there is no obligation on the company to pay dividends or repay the capital of the shareholders, whether they earn a profit or not.

The correct option is D
Equity

Equity is the riskless source of finance, as there is no obligation on the company to pay dividends or repay the capital of the shareholders, whether they earn a profit or not.