The type of business finances that entitles the holder to a fixed rate of dividend is?

A. preference stock
B. common stock
C. debentures
D. bank loan

Correct Answer:

Option C – debentures

Explanation

A debenture is a long-term debt security issued by a company and secured against assets, to raise capital for a business. The holder of a debenture is entitled to a fixed rate of interest at the maturity of the debt.