When Tata Steel acquired Corus, another company of the Tata group, Tata Sons Ltd., also invested in the deal. In which of the following did Tata Sons Ltd. invest?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Preference shares
Option (1) Equity shares — Incorrect. Equity shares are the owners’ capital. The deal does not tie them to Tata Sons; Tata Steel raised its own amount through debt, equity or both.
Option (2) Preference shares — Correct. Tata Sons Ltd. invested $1 billion for preference shares, and Tata Steel was to invest an equal amount.
Option (3) Debentures — Incorrect. Debentures are a form of borrowed funds. The borrowing in this deal, a debt of over $8 billion, was raised by Tata Steel.
Option (4) Public deposits — Incorrect. Public deposits are money borrowed directly from the public. The deal names no such deposits.
Note: A whole question was hiding in the Tata Steel and Corus box that opens the chapter. Before you rush to the first heading, give the opening box a proper read.
NCERT (2026-27 Edition):
|
