Question :
Which of the following statements is true?
Option 1: Any other instrument will include any kind of security (document) evidencing a debt that a company may issue.
Option 2: For example, Public Deposit, it being an instrument of the company, is also termed as debenture.
Option 3: The term 'Any Other Instrument' is a wide term that includes every instrument issued by the company that evidences debt.
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
"Any other instrument" encompasses all forms of securities representing debt that a company may issue, including public deposits, which are also considered debentures. This term is broad, covering any financial instrument that serves as evidence of a company's indebtedness. Hence, the correct option is 4.
Question : Case Study 1:
ABC Corporation is a well-established manufacturing company looking to optimize its short-term funding needs.
ABC Corporation is planning to issue a debt instrument with a maturity of 90 days. Which money market instrument should it consider?
Option 1: Treasury bill
Option 2: Corporate bond
Option 3: Equity share
Option 4: Debenture
Question : Case Study 8:
JKL Ltd. is a real estate company planning to raise funds for a large-scale construction project.
To fund its construction project, JKL Ltd. is considering issuing long-term debt. What type of financial instrument might it use?
Option 1: Commercial paper
Option 2: Equity share
Option 3: Treasury bill
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