Which of the following is not a source of finance for a company?

Equity share capital
Preference share capital
Fixed assets
Debentures

The correct answer is C. Fixed assets.

Equity share capital is the money that a company raises by selling shares to investors. Preference share capital is a type of equity share capital that gives investors a fixed dividend and priority over ordinary shareholders in the event of a liquidation. Debentures are loans that a company raises from lenders. Fixed assets are assets that a company owns and uses in its business, such as land, buildings, and equipment.

Fixed assets are not a source of finance for a company because they do not generate cash flow. Instead, they require a company to spend cash to acquire them. Once a company has acquired fixed assets, it must then spend money to maintain and repair them. In addition, fixed assets may become obsolete over time, and a company may need to replace them. As a result, fixed assets can actually be a drain on a company’s cash flow.

In contrast, equity share capital, preference share capital, and debentures are all sources of finance for a company. When a company raises money by selling shares, issuing preference shares, or borrowing money, it receives cash that it can use to fund its operations. This cash flow can help a company to grow its business and generate more profits.

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