Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Which is the least risky for the investors of the company than shares?
Options:
Preference shares
Debentures
Either option 1 or 2
None of these
Correct Answer:
Debentures
Explanation:
Debentures have priority over shares as repayment in case of winding up of company.