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Masja [62]
3 years ago
13

Match the given distinctiveness to the type of equity or debt finance that is available for a business.

Business
1 answer:
nata0808 [166]3 years ago
5 0

Answer:

See below

Explanation:

<u>Common stock</u>

The equity holders have a right to vote on corporate policy. In the case of liquidation, common stockholders are last in line in the distribution of the company's assets.

<u> Preferred stock </u>

The equity holders are paid dividends at regular intervals.  Preferred stockholders have a priority in dividends payments over common shares but have no voting rights.

<u>Retained earnings</u>

The profit is used in the business. Retained earnings are profits that a company's management opts to distribute to shareholders as dividends.

<u>Senior debt</u>

The lenders are always paid within a predetermined time. Senior debts are low risk as they are given priority over other debts in repayment.

<u>Subordinate debt</u>

The debt carries more risk and is not the first in line to be paid. In the event of liquidation, subordinate debts are considered last in order of payment.

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