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
Correct Answer: All of the above
Solution : Answer = All of the above
All the statements are true regarding collateral security. Collateral security serves as secondary security alongside the principal security, providing additional assurance to the creditor. Those holding debentures as collateral security typically do not receive interest, while banks are entitled to interest on the original loan they extend. Hence, the correct option is 4.
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 : 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
Question : A and B are partners sharing profit equally. C was the manager who received a salary of Rs. 8,000 per month, in addition to a commission of 5% on net profit after charging such a commission. Profit for the year is Rs. 56,000 before charging salary. Find out the total remuneration of C.
Option 1: Rs. 1,56,000
Option 2: Rs. 1,76,000
Option 3: Rs. 1,52,000
Option 4: Rs. 1,74,000
Question : In addition to oral traditions, how were Bhakti-Sufi compositions preserved?
Option 1: Through dance forms
Option 2: Through architecture
Option 3: Through manuscripts
Option 4: Through rituals
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