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

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