debentures 1

Which of the following is a correct statement

• a debentureholder is a owner of the company

• a debenture holder can get back his money only on liquidation of company

• Debenture can be issued at discount and redeemed at premium

• debentureholder get interest only in the events of profits

Which of the following statements about debentures is true?

• Debentureholders have a claim on the company's assets before shareholders

• Debentures are a form of equity financing

• Debentures do not pay interest

• Debentureholders can vote in company meetings

What is a key feature of a convertible debenture?

• It pays a higher interest rate than regular debentures

• It is secured by physical assets

• It has no maturity date

• It can be converted into shares of the company

Which of the following is NOT a characteristic of debentures?

• They are typically issued for a fixed term

• They usually have a fixed interest rate

• They represent a loan to the company

• They provide ownership rights in the company

What is the primary purpose of issuing debentures?

• To secure loans from banks

• To raise equity capital

• To increase shareholder voting power

• To obtain long-term debt financing

Which of the following is a disadvantage of debentures?

• They are unsecured

• They require regular interest payments

• They have no fixed term

• They can dilute ownership

How are debentures typically classified?

• By their conversion feature

• By their interest rate

• By their maturity period

• By their security status