Accounting Multiple Choice Question – 13 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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A director-owned company needs additional funds.

Which method of finance might lead to a reduction of the director’s control of the business?

Select ONE answer:

  1. bank loan
  2. debenture
  3. ordinary share issue
  4. preference share issue

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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