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Meaning of Debentures

A ‘share’ rep...

Question

A ‘share’ represents ownership of the company whereas a debenture is only acknowledgement of debt. State true or false.

A

False

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B

True

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Solution

The correct option is B
True

True. A ‘share’ represents ownership of the company whereas a debenture is only acknowledgement of debt.

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Q. A ‘share’ represents of the company whereas a 'debenture' is only of debt.

Q. State True/False with reasons:
debenture capital is a borrowed capital or Debenture is a Loan Capital of the company.

Q. State to whether the following statements are True/False.

The acknowledgement of debt under common seal of company in termed as share.

Q. Objective Type Questions :
State whether following statements are true or false :

ROI is calculated on ownership capital only.

Q. State True/False with reasons:
Redeemable debentures are repaid on winding up of the company.

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