Advertisements
Advertisements
Question
Explain the following term/concept.
Debenture holder
Advertisements
Solution
Debentures are debt instruments issued by a company to raise capital. The registered holders of such debentures are called debenture holders. The debenture holder is a creditor of the company. They get a fixed rate of interest for the amount they have invested in the debentures.
APPEARS IN
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.
Return of income on debentures is ______ at fixed rate.
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.
Convertible Debentures can be converted into equity shares.
State whether the following statement is true or false.
Interest on debentures is paid notwithstanding the volume of profit.
Find the odd one.
Complete the sentence.
Debenture holder is a ______ of the company.
Complete the sentence.
The ______has to correspond with debenture holders on important occasions.
Complete the sentence.
Interest does not depend upon ______ of the company.
Complete the sentence.
Company cannot issue debentures with ______ rights.
Complete the sentence.
A company cannot issue debentures to more than 500 people without appointing a ______.
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.
Debenture certificate ____________.
Select the correct option.
____________ Debenture.
Correct the underlined word and rewrite the following sentence.
The person who purchases debentures of the company is called shareholder.
Explain the following term/concept.
Debentures
Explain the following term/concept.
Precise information
