Debenture Features and Priorities Quiz

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Questions and Answers

On liquidation of a company, who ranks last in the list of claimants?

  • Preference shareholders
  • Registered Debentures
  • Equity shareholders (correct)
  • Debentureholders

What type of shares get dividends at a fluctuating rate depending on the company's profits?

  • Equity shares (correct)
  • Redeemable Debentures
  • Convertible Debentures
  • Unsecured Debentures

Which type of shares do not have preferential right for payment of dividend and repayment of capital?

  • Secured Debentures
  • Equity shares (correct)
  • Registered Debentures
  • Bearer Debentures

Which type of shares enjoy normal voting rights and can participate in the management of the company?

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

Which type of shares do not have preferential rights for dividend payment?

<p>Debentureholders (A)</p> Signup and view all the answers

Which type of shares are creditors and rank prior to shareholders for repayment on liquidation of a company?

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

Equity capital cannot be returned during the life of a company, except in case of what?

<p>Buy back (D)</p> Signup and view all the answers

What is the method of issuing shares where the company offers shares to its existing equity shareholders?

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

Which method of issuing shares involves setting a floor price or a price band prior to opening the subscription?

<p>Book-Building Method (C)</p> Signup and view all the answers

What scheme allows employees of the company to purchase shares at a discounted price?

<p>Employee Stock Option Scheme (D)</p> Signup and view all the answers

In which method of issuing shares does the company directly place securities with selected investors?

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

Which type of issue of shares allows existing shareholders to acquire new shares in proportion to their existing shareholding?

<p>Preferential Allotment (A)</p> Signup and view all the answers

What scheme aims at rewarding employees by providing them with shares based on their performance?

<p>Stock Appreciation Rights Scheme (D)</p> Signup and view all the answers

Which method of issuing shares involves setting a fixed price for the subscription of shares?

<p>Fixed Price Issue Method (D)</p> Signup and view all the answers

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