Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

Match List I with List II.

List I List II
A. Voting Rights I. Debentures
B. Artificial person II. Shareholders
C. Convertible III. Shares
D. Not secured by any charge IV. Company

Choose the correct answer from the options given below :

Options:

A-I, B-IV, C-III, D-II

A-IV, B-I, C-III, D-II

A-II, B-IV, C-III, D-I

A-II, B-IV, C-I, D-III

Correct Answer:

A-II, B-IV, C-I, D-III

Explanation:

The correct answer is option 4- A-II, B-IV, C-I, D-III.

* Voting Rights- Shareholders. Shareholders have the right to vote on important company matters, such as electing the board of directors or approving major corporate decisions.

* Artificial person- Company. A company is considered a legal entity separate from its owners (shareholders) and is often referred to as an artificial person because it can enter into contracts, sue or be sued, and conduct business activities in its own name.

* Convertible- Debentures. Convertible debentures are debt instruments issued by a company that can be converted into equity shares at a later date, typically at the option of the holder or under predetermined conditions.

* Not secured by any charge- Shares. Shares represent ownership in a company, but they are not secured by any specific assets of the company. Shareholders bear the risk of loss if the company faces financial difficulties or goes bankrupt, as they are the last to be repaid in such situations.