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Question : Case Study 16:

GHI Ltd. is a leading company in the telecommunications sector planning to expand its international operations.

Question : 

GHI Ltd. is looking to raise funds for expanding its international operations. Which type of financial instrument might it use?

Option 1: Commercial paper
 

Option 2: Equity share
 

Option 3: Debenture

 

Option 4: Treasury bill


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Equity share
 


Solution : The correct answer is (b) Equity share.

Equity shares are a type of security that represents ownership in a company. When a company sells equity shares, it is raising funds by selling a piece of itself to investors. Equity shares are a good way for companies to raise funds for long-term investments, such as expanding international operations.

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