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When company need money without increasing capital it should:

A- Issue shares B- issue bonds C- take aloon D- B &C are correct

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/05/02
Muhammad Junaid Muhammad Younus
by Muhammad Junaid Muhammad Younus , Senior Accountant , Al Osais Contracting Co.

D is correct. Bond is a debt instrument where issuer issues the bond to raise money without increasing share capital. The issuer of the bond is obliged to pay interest (coupon rate) according to the terms of the contract and the principal amount on the later date.

Nancy Refai
by Nancy Refai , Health, safety and environmental management Trainer and consultant , Freelancer

It's D. as they either can take a loan or issue a bond

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

A- >.>>>>>>>>>>>........>>>>>>>>>>>Issue shares

Abdullah Sheikh
by Abdullah Sheikh , Senior Accountant , Yallabit General Trading Co.

D is the answer. can issue a bond or take loan depending on the company's futher business plan and needs

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is >>>>>>>>>> (D)

Issue of bond and taking loan does not increase capital.

Asad Ahmed
by Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

C - take a loan from any Lender, because it doesn't effect on the share capital

Jerin Mathew
by Jerin Mathew , Senior Executive - Finance and Accounts , Saud Bahwan Automotive LLC

The answer is D - B & C are correct. In other words, the company can either issue bonds, or take a loan.

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Taking a loan an d issuing a bond are both a liability accounts and they do affect the capital section of an entity. In short, you can see from the accounting equation A= L+C, the liabilities are the creditor's equity and the capital is the owner's equity.

Choice D is the right answer for this question.

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

D. B & C IS THE ANSWER......................

Amrit Pal Singh
by Amrit Pal Singh , Lead - FInance , Paniit Alumni Reach for Jharkhand Foundation

To fulfil money requirement witnout increasing capital, company can take a lan or issue bonds

Mohamed Abbadi
by Mohamed Abbadi , Accounting Department Manager , Zoofi Tech Co Ltd

I think the correct answer about this question  is D

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