Sources of finance part 2

Retained earning is which source of finance

• Internal

• External

• Both

• None of above

On which share dividend keeps on accumlating untill it's fully paid

• Equity share

• Redeemable preference shares

• Convertible preference shares

• Cumulative preference shares

These shares can be converted into equity shares after fix period

• Redeemable preference shares

• Cumulative preference shares

• Convertible preference shares

• Irredeemable preference shares

In case of cumulative preference share is unpaid dividend accumlated?

• yes

• no

• I don't know

• ask teacher

Holder of this share can participate in surplus profit beside preferential dividend

• Cumulative preference share

• Participating preference share

• Convertible preference share

• Redeemable preference share

This shares are redeemed after fixed period of time

• Cumulative preference share

• participating preference share

• Convertible preference share

• Redeemable preference share

Capitalization of profit by issue of bonus is known as

• ploughing back of profit

• giving money

• self financing

• a & c

Net profit which is not distributed to shareholder as dividend is

• Equity

• debenture

• preference

• retained earning

Types of borrowed capital

• Debenture

• Bonds

• Accepting deposit

• All of the above

Debenture face value usually is

• High

• low

• very low

• dont'know