Debenture Features and Priorities Quiz
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Debenture Features and Priorities Quiz

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@SleekEuphonium

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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</p> Signup and view all the answers

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

    <p>Debentureholders</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</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</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</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</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</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</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</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</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</p> Signup and view all the answers

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