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Question

Mr. Shah, a businessman of the textile industry has rented some necessary machines and equipment for 3 years. Within a very short time period, he became very famous in the business field. What sources has Mr. Shah taken to support funds for the collection?


A

Preference capital

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B

Debentures

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C

Equity capital

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D

Advances from purchase

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Solution

The correct option is B

Debentures


A debenture is an important instrument for raising long term capital.


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