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Question
Debenture capital is a ______ capital of a company.
Options
Borrowed
Owned
Permanent
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Solution
Debenture capital is a borrowed capital of a company.
Explanation:
The capital of a company is raised by issuing shares or debentures to the public. The share capital is the owned capital, while Debenture Capital is the borrowed capital of a company. Debenture is an acknowledgement of a debt. Debenture holder is a creditor of the company.
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Debenture holders are ______ of the company.
Bearer debentureholders get interest through ______.
Select the correct answer from the options given below and rewrite the statement.
______ is an acknowledgement of debt issued by the company under common seal.
Write a word or a term or a phrase which can substitute the following statement.
An acknowledgement of debt issued by the company under its common seal.
Match the pairs.
| Group ‘A' | Group ‘B' |
| a) Debentureholder | 1) Borrowed Capital |
| b) Interest on Debentures | 2) Interest coupons |
| c) Convertible Debentures | 3) Evidence of Loan |
| d) Debenture Certificate | 4) Safe and secured investment |
| e) Investment in Debentures | 5) Interest warrant |
| f) Redeemable Debentures | 6) Conversion into Debentures |
| g) Debentures | 7) Risky investment |
| 8) Evidence of shares | |
| 9) Creditor | |
| 10) Conversion into equity shares | |
| 11) Redeemed after fixed period | |
| 12) Redeemed at winding up of company | |
| 13) Owner | |
| 14) Owned Capital |
State whether the following statement is true or false.
Debenture holders get regular dividend.
State whether the following statement is true or false.
Debentures are never redeemed by the company.
State whether the following statement is true or false.
Debentures are always fully paid-up.
Find the odd one.
Complete the sentence.
Company issues ______ certificate to the debenture holder after allotment of debentures.
Complete the sentence.
A company cannot issue debentures to more than 500 people without appointing a ______.
Select the correct option.
____________ Debenture.
Answer in one sentence.
Who is debenture holder?
Answer in one sentence.
What is the income of debenture holder?
Explain the following term/concept.
Precise information
Answer in brief.
Which are the precautions to be taken by the Secretary while corresponding with debenture holders?
