Question

Multiple Choice Question:

The term 'redeemable' is used for

Options

• Preference shares

• Commercial paper

• Equity shares

• Public deposits

Answer 1

The term ‘redeemable’ is related to preference shares. It implies the amount of preference shares which is repaid by a company after a certain specified period of time. Such repayment to preference shareholders is made in accordance with the terms specified in Section 80 of the Companies Act, 1956.

Hence, the correct answer is option Preference shares.