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Question
State to whether the following statement is True/False.
The acknowledgement of debt under common seal of company in termed as share.
Options
True
False
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Solution
False
Explanation: The acknowledgement of debt under the common seal of a company is termed as debenture. Debentures carry a fixed rate of interest that is a charge against company profits. Debentures are paid back after the expiry of the specified term for which they were issued.
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