Basic Instruments For Business Financing - SS1 Economics Past Questions and Answers - page 1

1

What is a share?

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A

A type of debt instrument

B

A type of equity instrument

C

A type of government bond 

 

D

A type of crowdfunding platform

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2

What is a debenture?

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A

A type of equity instrument

B

A type of government bond

 

C

A type of debt instrument

D

A type of crowdfunding platform

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3

What is a bond?

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A

A type of equity instrument

B

A type of government bond

 

C

A type of debt instrument

D

A type of crowdfunding platform

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4

What is the main difference between shares and debentures?

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A

Shares represent ownership in a company, while debentures are a type of debt instrument.

 

B

Shares are a type of debt instrument, while debentures represent ownership in a company.

C

Shares and debentures are the same things.

 

D

Neither shares nor debentures are used for business financing.

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5

What is the main difference between debentures and bonds?

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A

Debentures have a longer maturity period than bonds.

B

Bonds are issued in smaller denominations than debentures.

C

Debentures represent ownership in a company, while bonds are a type of debt instrument.

D

Bonds are typically issued by governments, while debentures are issued by companies.

 

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6

What do shareholders receive in return for investing in a company?

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7

How are bonds different from debentures?

 

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