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Question

________ shares is the most important source of raising long term capital by a company.

A
Equity
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B
Preference
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C
Bonus
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D
Right
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Solution

The correct option is A Equity
Equity shares is the most important source of raising long term capital by a company.
Equity shares represent the ownership of the a company and thus is known as owner's capital or owner's funds. Equity share capital is the prerequisite before creation of a company.

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