Which of the following is a source of fund that a limited liability company will not pay back?

Assessment: WAEC SSCE - Marketing - 2015 (Objective) Subject: Marketing

Question 1 Report

Which of the following is a source of fund that a limited liability company will not pay back?

Answer Details
A source of funds that a limited liability company will not pay back is known as equity financing. This is where the company raises funds by issuing shares to investors in exchange for a stake in the company. Unlike debt financing, equity financing does not have to be repaid, and the investors do not have a legal right to demand repayment. Instead, they share in the company's profits and losses and may benefit if the company performs well. Therefore, the correct option is "Ordinary shares".
Read lesson note on Marketing Mix And Marketing Environment (WAEC)
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