Question :
When no specific asset but all assets (except those charged by way of fixed charge) are charged as security. A Floating Charge holder has a preference over an unsecured creditor for settling his claims, in the event of winding-up of the company.
Option 1: Fixed charge
Option 2: Floating charge
Option 3: Interest
Option 4: Current assets
Correct Answer: Floating charge
Solution : Answer = Floating charge
In the event of a company winding up, a floating charge holder has a preference over unsecured creditors for settling claims. A floating charge is a security interest over a fluctuating pool of assets, allowing the company to continue operating and disposing of assets until the charge crystallizes, typically upon insolvency. Hence, the correct option is 2.
A charge created on definite assets of a permanent nature, such as land, building, machinery, etc., is known as-------------
Option 2: Floating Charge
Option 4: Fixed assets
The debentures which are secured by either a fixed charge or a floating charge on the assets of the company. A charge on the assets of the company is registered with the Registrar of Companies are called as
Option 1: Secured debentures
Option 2: Unsecured debentures
Option 3: Irredeemable debentures
Option 4: Convertible debentures
Question : These assets provide little or low return. Which type of asset is highlighted in the given statement?
Option 1: Fixed asset
Option 2: Tangible asset
Option 3: Current asset
Option 4: Intangible asset
Question : Goodwill and copyright are examples of which assets?
Option 1: Liquid asset
Option 2: Current asset
Option 3: Fixed asset
Question : It refer to those assets which remain in the business for a period more than one year. Which type of asset is highlighted in the given statement?
Option 1: Current assets
Option 2: Fixed assets
Option 3: Tangible assets
Option 4: Intangible assets
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