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Direction: Read the following text and answer the questions on the basis of the same:
Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.
Q. Right to control is enjoyed by which of the following sources of finance?
  • a)
    Debentures
  • b)
    Equity shares
  • c)
    Retained earnings
  • d)
    Preference shares
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Direction: Read the following text and answer the questions on the ba...
Equity shares are long-term financing sources for any company. These shares are issued to the general public and are non-redeemable in nature. Investors in such shares hold the right to vote, share profits and claim assets of a company.
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Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer?
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Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following text and answer the questions on the basis of the same:Faulad Steel Ltd. is a multi-product company, manufacturing steel pipes in wide range for wide spectrum of application. Recently the company received a big order from an MNC for which it requires additional funds. The finance manager reported that the company is not in a position to bear extra burden of explicit cost and equity shareholders insisted not to issue more shares as it can affect their control consideration. Now, the company has only one option, i.e., ploughing back of profit.Q. Right to control is enjoyed by which of the following sources of finance?a)Debenturesb)Equity sharesc)Retained earningsd)Preference sharesCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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