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 bondÂ
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D
A type of crowdfunding platform
2
What is a debenture?
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A
A type of equity instrument
B
A type of government bond
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C
A type of debt instrument
D
A type of crowdfunding platform
3
What is a bond?
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A
A type of equity instrument
B
A type of government bond
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C
A type of debt instrument
D
A type of crowdfunding platform
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.
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B
Shares are a type of debt instrument, while debentures represent ownership in a company.
C
Shares and debentures are the same things.
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D
Neither shares nor debentures are used for business financing.
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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