Question

Why are equity shares considered the best source of funding from a risk point of view?

a.

They have fixed rate of interest

b.

They are entitled to entire divisible profits

c.

They are less expensive

d.

They have tax advantages

Answer: (b).They are entitled to entire divisible profits Explanation:Equity shares are considered the best source of funding from a risk point of view because they are entitled to entire divisible profits.

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Q. Why are equity shares considered the best source of funding from a risk point of view?

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