Question : When a Company takes a loan from a Bank or from some other party, the Company may have to issue debentures as a subsidiary or secondary security in addition to the principal security known as --------
Option 1: For cash consideration
Option 2: For other then cash consideration
Option 3: Collateral securities
Option 4: None of the above
Correct Answer: Collateral securities
Solution : Answer = Collateral securities.
Collateral securities are additional assets pledged by a borrower to secure a loan. When a company takes a loan and offers debentures as secondary security, these debentures serve as collateral securities. They provide an extra layer of assurance to the lender in case the primary security is insufficient to cover the loan. Hence, the correct option is 3.
Question : Which of the following statements is true?
Option 1: Collateral security means secondary security in addition to principal security.
Option 2: The bank or the other persons to whom such debentures are issued as collateral security will not be entitled to any interest on these debentures.
Option 3: Bank are entitled to get interest on the original loan advanced by them.
Option 4: All of the above
Option 1: Loans taken are secured by mortgage of the assets purchased is known as primary or principal security.
Option 2: Security given in addition to the primary or principal security is termed or known as Collateral Security.
Option 3: Collateral security is realised by the lender only if the due amount (loan plus interest) cannot be recovered by realising the primary or principal security.
Question : Which of the following type of monetary incentive is highlighted in the below statement? Employees get dividend as well as participation in the management of the organisation in addition to their regular salaries.
Option 1: Co-partnership
Option 2: Stock Option
Option 3: Prerequisites
Option 4: Both A and B.
Question : Directions: If A denotes addition, B denotes multiplication, C denotes subtraction and D denotes division, then what will be the value of the following expression? 55 A 5 B (7 A 4) C 75 D (25 D 5) =?
Option 1: 95
Option 2: 110
Option 3: 100
Option 4: 105
Question : Directions: If A denotes addition, B denotes multiplication, C denotes subtraction, and D denotes division, then what will be the value of the following equation? 14 C (18 D 3) A 5 = ?
Option 1: 31
Option 2: 13
Option 3: 20
Option 4: 17
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