Utme 2020 Economics Question 27

Practice objective / multiple choice question 27 from the 2020 Utme Economics examination. This question covers Finance .

Utme 2020 Economics Objective / Multiple Choice 2 Difficulty

Topic: Finance

Question 27 UTME • 2020 • ECONOMICS • objective

Which of the following is not true about debentures?

Correct Answer A. Preference shareholders receive their share of profits before debenture holders receive their entitlements.

B. Debentures holders are creditors to the company and therefore do not share in the risk of the company.

C. Debentures are fixed interest bearing security with specified maturity.

D. Debenture holders are entitled to interest payments whether or not profits are made.

Correct Answer

Correct Option:

Preference shareholders receive their share of profits before debenture holders receive their entitlements.

This is Utme 2020 Economics Question 27. It is one of the objective questions from the 2020 Utme Economics examination.

The question covers Finance .

Difficulty level: 2 .

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