Advertisements
Advertisements
Question
Debenture capital is a ______ capital of a company.
Options
Borrowed
Owned
Permanent
Advertisements
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.
______ are the creditors of the company.
Bearer debentureholders get interest through ______.
Select the correct answer from the options given below and rewrite the statement.
Return of income on debentures is ______ at fixed rate.
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.
Interest on debentures is paid notwithstanding the volume of profit.
State whether the following statement is true or false.
All types of debentures are eligible for conversion into equity shares.
State whether the following statement is true or false.
Debenture holders are the owners of the company.
Complete the sentence.
The person who purchases the debentures of a company is called ______
Complete the sentence.
Company cannot issue debentures with ______ rights.
Complete the sentence.
The power to issue debentures has been vested with the ______.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Return on Debentures | 1) __________________ |
| b) Debenture certificate | 2) __________________ |
| c) __________________ | 3) Debentureholders |
| d) __________________ | 4) Debenture |
| e) __________________ | 5) Power to issue debentures |
Select the correct option.
____________ Debentureholders.
Select the correct option.
____________ Power to issue debentures.
Answer in one sentence.
What is debenture?
Explain the following term/concept.
Precise information
Justify the following statement.
The company secretary should take certain precautions while corresponding with debenture holders.
