Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

Debenture holders do not get............ like shareholders.

Options:

Dividend

Capital Appreciation

Voting rights

All of these

Correct Answer:

All of these

Explanation:

The correct answer is option 4- All of these.

Debenture holders are creditors of the company, not owners. Therefore, they do not enjoy the same rights and benefits as shareholders.

  1. Dividend – Only shareholders receive dividends. Debenture holders receive fixed interest, not dividends.

  2. Capital Appreciation – Shareholders benefit from an increase in share value. Debenture holders do not benefit from capital appreciation.

  3. Voting rights – Shareholders have voting rights in company decisions; debenture holders do not.