Debenture Features and Characteristics Quiz

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Questions and Answers

What do convertible preference share holders have the right to convert their shares into?

  • Debentures
  • Equity shares (correct)
  • Retained earnings
  • Public deposits

What term is used for the finance needed by a business organization?

  • Stock
  • Dividend
  • Bond
  • Capital (correct)

Who do equity shareholders elect as their representatives?

  • Suppliers
  • Customers
  • Debt holders
  • Board of Directors (correct)

To whom are bonus shares issued as gifts?

<p>Existing shareholders (B)</p> Signup and view all the answers

What is the relationship between bond holders and the company?

<p>Creditors (B)</p> Signup and view all the answers

What is a depository receipt traded in a country other than the USA called?

<p>Global Depositary Receipt (GDR) (A)</p> Signup and view all the answers

In which year was the first Industrial Policy declared?

<p>1956 (C)</p> Signup and view all the answers

'Deferred payment' refers to when goods are delivered by a supplier to a customer with payment due:

<p>At any time in the future (B)</p> Signup and view all the answers

What is the main characteristic of debentures?

<p>Debt instrument with no fixed maturity date (D)</p> Signup and view all the answers

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