SYJC-SP, Digital Guide, Chapter 2 - Sources of Corporate Finance, Q.6, Page 38

SYJC - Secretarial Practice Digital Guide Chapter 2 - Sources of Corporate Finance (Page 38, Question 6) Q.6 Justify the following statements. (1) Equity shareholders are real owners and controllers of company. (2) Preference Shares do not carry any voting right. (3) The debentures are secured by charge on assets of the company. (4) Retained earnings is simple and cheapest method of raising finance. (5) Public deposit is good source of short term financing. (6) Bond holder is creditor of the company. (7) Trade credit is not cash loan. (8) Different investors have different preferences. (9) Equity share capital is risk capital.