5 Views

Question : Case Study: PQR Enterprises - Funding Strategies for Diversification

PQR Enterprises is a well-established conglomerate planning to diversify its business operations. The company is evaluating various sources of business finance to support its diversification plans.

Questions : Debentures and Financial Instruments

What makes debentures distinct from equity shares?

Option 1: Debentures provide ownership rights
    

Option 2: Debentures pay fixed dividends
 

Option 3: Debentures are short-term securities

 

Option 4: Equity shares are issued by governments


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 3rd Jan, 2024

Correct Answer: Debentures pay fixed dividends
 


Solution : The correct answer is (b) Debentures pay fixed dividends

To elaborate further, debentures are debt instruments where the issuing company agrees to pay a fixed rate of interest to the debenture holders at regular intervals until the maturity date. On the other hand, equity shares represent ownership in a company and do not involve fixed dividend payments. Instead, equity shareholders participate in the company's profits through dividends, which are not fixed and can vary based on the company's performance and decisions.

Related Questions

UEI Global, Hotel Management ...
Apply
Training & Placement Guarantee | Top Recruiters: The Oberoi, Taj, Lee Meridien, Hyatt and many more
Amity University Noida MBA Ad...
Apply
Amongst top 3% universities globally (QS Rankings)
XAT- Xavier Aptitude Test 2026
Apply
75+ years of legacy | #1 Entrance Exam | Score accepted by 250+ BSchools | Apply now
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
Sharda University Admissions ...
Apply
North India's Largest Educational Group | NIRF Ranked 86 | NAAC A+ Grade | Highest Package 1.6 Cr | Applications Closing on 31st July
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books