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Business Studies

Methods of Floatation

Public limite...

Question

Public limited companies cannot issue __________.

A

Equity shares

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B

Deferred shares

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C

Preference shares

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D

Right Share

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Solution

The correct option is B Deferred shares
Deferred shares are those shares that does not have any rights to the assets of the company undergoing bankruptcy until equity and preference shares are paid off. Public limited company's are not allowed to issue such shares.

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