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Financial Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Management1 Mark
Question
Which is the riskless source of finance?
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Answer

Equity definitely is the riskless source of finance, as there is no obligation on the company to pay dividends or repay capital of the shareholders, whether they earn profit or not.

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