{"id":24816,"date":"2024-04-15T06:51:45","date_gmt":"2024-04-15T06:51:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=24816"},"modified":"2024-04-15T06:51:45","modified_gmt":"2024-04-15T06:51:45","slug":"a-project-which-may-not-add-to-the-existing-profits-should-be-financed-by-__________-a-debentures-b-preference-share-capital-c-equity-capital-d-public-deposits","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-project-which-may-not-add-to-the-existing-profits-should-be-financed-by-__________-a-debentures-b-preference-share-capital-c-equity-capital-d-public-deposits\/","title":{"rendered":"A project, which may not add to the existing profits, should be financed by __________. A. debentures B. preference share capital C. equity capital D. public deposits"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9e5cf217e91\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    debentures                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    preference share capital                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    equity capital                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    public deposits                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is A. debentures.<\/p>\n<p>Debentures are a type of loan that a company can take out from a lender. The lender agrees to lend the company money for a set period of time, and the company agrees to pay back the loan with interest. Debentures are considered to be a relatively safe investment for lenders, because the company is legally obligated to repay the loan.<\/p>\n<p>Preference share capital is a type of equity that a company can issue. Preference shareholders have a higher claim on the company&#8217;s assets than ordinary shareholders, and they also receive a fixed dividend. However, preference shareholders do not have the same voting rights as ordinary shareholders.<\/p>\n<p>Equity capital is the money that a company raises from its shareholders. Equity shareholders own <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n        <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>     <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> a part of the company, and they have the right to vote on the company&#8217;s board of directors. Equity shareholders also have the right to receive a share of the company&#8217;s profits, if any.<\/p>\n<p>Public deposits are a type of loan that a company can take out from the public. The company offers to pay interest on the loan, and the public can invest in the loan by buying shares in the company. Public deposits are considered to be a relatively risky investment, because the company is not legally obligated to repay the loan.<\/p>\n<p>In the case of a project that may not add to the existing profits, it is important to choose a financing option that is low-risk and does not require a large upfront payment. Debentures are the best option for this type of project, because they are a relatively safe investment for lenders and they do not require a large upfront payment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[695],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A project, which may not add to the existing profits, should be financed by __________. 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