JAMB - Economics (2020 - No. 22)
The type of business finances that entitles the holder to a fixed rate of dividend is?
preference stock
common stock
debentures
bank loan
Forklaring
A debenture is a long-term debt security issued by a company and secured against assets, to raise capital for a business. The holder of a debenture is entitled to a fixed rate of interest at the maturity of the debt.