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Companies (Acceptance of Deposits) Rules 2014 - Rule 2(1)(c)

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Companies (Acceptance of Deposits) Rules 2014 - Rule 2(1)(c)

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Questions and Answers

What are manufacturers, wholesalers, and suppliers of goods or materials collectively referred to as?

Creditors

Debenture holders

Shareholders

Trade creditors (correct)

Why do business firms extend credit to customers for trade purposes?

Due to a legal obligation

As a form of cash loan

To decrease their sales

To promote future sales (correct)

What is the main difference between shares and debentures?

Shares are issued by governments, debentures by private companies

Shares represent ownership, debentures represent a loan (correct)

Shares are debt instruments, debentures are ownership securities

Shares are short-term, debentures are long-term securities

In trade credit, what happens when goods are delivered by a supplier to a customer?

<p>Payment is made after some time</p> Signup and view all the answers

Why do suppliers often offer discounts for early bill payments under trade credit?

<p>To encourage prompt payments</p> Signup and view all the answers

Companies (Acceptance of Deposits) Rules 2014 - Rule 2(1)(c)

Choose a study mode

Podcast

Questions and Answers

What are manufacturers, wholesalers, and suppliers of goods or materials collectively referred to as?

Why do business firms extend credit to customers for trade purposes?

What is the main difference between shares and debentures?

In trade credit, what happens when goods are delivered by a supplier to a customer?

Why do suppliers often offer discounts for early bill payments under trade credit?

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