Question : -------------------------------are the debentures that are convertible into shares.
Option 1: Convertible debentures
Option 2: Non convertible debentures
Option 3: Redeemable debentures
Option 4: Unsecured debentures
Correct Answer: Convertible debentures
Solution : Answer = Convertible debentures
Convertible debentures are a type of debt instrument issued by a company that can be converted into equity shares at a predetermined conversion ratio. This provides investors with the option to convert their debentures into shares of the issuing company, potentially allowing them to benefit from any future increase in the company's share value. Hence, the correct option is 1.
Question : A company cannot issue:
Option 1: Redeemable preference shares
Option 2: Redeemable equity shares
Option 4: Fully converrtiable debentures
Question : Equity shares are also known as:
Option 1: Ordinary shares
Option 2: Redeemable shares
Option 3: Cumulative preference shares
Option 4: Convertible debentures
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