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  3. ordinary shares on issue are good quality capital because ...

Question: ordinary shares on issue are good quality capital because ...

Question details

Ordinary shares on issue are good quality capital because __________________________.

 

A.

they can decrease when an asset is written off.

B.

shareholders are required to provide additional funds to the bank when the bank makes a loss.

C.

the bank has no commitment to pay dividends and can boost retained profits instead.

D.

they have brought funds to the bank.

E.

they use the credit rating of the bank.

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