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06. On liquidation of company, principal amount of debentures is
returned:
(A) First of All
(B) Last of All
(C) Before Equity Capital
(D) After Equity Capital
07. Which of the following statements is false?
(A) Debenture is a form of public borrowing.
(B) It is customary to prefix debentures with the agreed rate of interest.
(C) Debenture interest is a charge against profits.
(D) The issue price and redemption value of debentures cannot differ.
08.Which of the following is not a characteristic of Bearer Debentures?
(A) They are treated as negotiable instruments.
(B) Their transfer requires a deed of transfer.
(C) They are transferable by mere delivery.
(D) The interest on it is paid to the holder irrespective of identity
09. Shareholder are :
(A) Owners of the Company
(B) Debtors of the Company
(C) Creditors of the Company
(D) Promoters of the Company
10. Debentures represent the :
(A) Long-term Borrowings of a Company
(B) The Investment of Equity-Shareholders
(C) Directors’ shares in a company
(D) Short-term Borrowings of a Company
11. Deep discount Bonds are issued :
(A) At Zero Interest Rate
