Accounting Multiple Choice Question – 13 January 2023

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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