In the capital structure of a Public Limited Company, the term equity refers to

In the capital structure of a Public Limited Company, the term "equity" refers to ordinary shares. Option B is the correct answer.

Equity represents the ownership interest in a company. When you buy ordinary shares of a company, you become a part-owner or shareholder of that company. Shareholders have the right to vote on important company matters, such as electing the board of directors. They also have the potential to receive dividends, which are a portion of the company's profits distributed to shareholders.

Preference shares (Option A) are a type of shares that have preferential treatment in terms of dividends or repayment of capital but do not carry voting rights. Debentures (Option C) are a type of debt instrument issued by a company to raise funds, which is different from equity. Stocks (Option D) is a general term that can refer to both equity shares and preference shares. Bonds (Option E) are also debt instruments issued by a company or government to raise funds, and they are not considered equity.

So, in summary, equity in the capital structure of a Public Limited Company refers to ordinary shares, which represent ownership in the company.