Difference between Shares and Debentures

Q.

The return on shares is called ___________.

1. Dividend

2. Interest

3. Yield

4. None of these

Q.

The return on debentures is called ___

1. None of these

2. Interest

3. Dividend

4. Yield

Q. is a written instrument acknowledging a debt written by its company.

1. Share
2. Debenture
3. Term loan
4. Bank Loan

Q. debentures are repayable only at the time of closing down a company.

1. Redeemable
2. Irredeemable
3. Convertible

Q.

How deficiency of creditors is paid off?

Q.

What does a Bearer Debenture mean?

Q.

Debenture interest-

1. None of these

2. at zero interest rate

3. with specified rate of interest

4. without the specified rate of interest

Q.

How debentures are different from shares? Give two points.

Q. Objective type questions.
Answer in are sentence only.

What is meant by ‘Irredeemable Debentures?

Q.

________________ are repayable only at the time of closing down a company.

1. Redeemable Debentures

2. Irredeemable debentures

3. Convertible Debentures

4. None of these

Q.

Debentureholders are like:

1. owners of the company

2. promoters of the company

3. creditors of the company

4. debtors of the company

Q. Interest payable on debentures is a charge against profits of the company.

1. True
2. False

Q. The return on debentures is called dividend.

1. False
2. True

Q. Debentureholders are like creditors of the company.

1. False
2. True

Q. Which of the following statements is false?

1. A company has to redeem its preference shares within 20 years.
2. Preference shareholders are creditors of a company.
3. The part of the authorized capital which can be called up only in the event of liquidation of a company is called reserve capital.
4. Capital redemption reserve can be utilized only for issuing fully paid bonus shares.

Q. Select the appropriate answer from the alternatives given below & rewrite the completed statements :

Cash proceeds from issue of debentures is _______________.
a) financial activity
b) non financial activity
c) operating activity
d) trading activity

Q. The winding up order shall operate in favour of all _________________.

1. The creditors of the company
2. The contributories of the company
3. Both (A) and (B)
4. None of the above

Q. What is meant by acceptance of a bill of exchange?

Q.

How are debentures different from shares? Give two points.