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Question
Issue of shares is the most important source of raising long-term finance.
Options
Equity Shares
Preference shares
Debentures
Loans from commercial banks
Solution
Equity Shares
Explanation:
The issue of shares is the most important source of raising long-term finance. The amount of capital to be raised from members of the public is divided into units of equal value. These units are known as shares and the aggregate value of shares is known as the share capital of the company.
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