Basic Instruments For Business Financing - SS1 Economics Past Questions and Answers - page 1
What is a share?
A type of debt instrument
A type of equity instrument
A type of government bond
A type of crowdfunding platform
What is a debenture?
A type of equity instrument
A type of government bond
A type of debt instrument
A type of crowdfunding platform
What is a bond?
A type of equity instrument
A type of government bond
A type of debt instrument
A type of crowdfunding platform
What is the main difference between shares and debentures?
Shares represent ownership in a company, while debentures are a type of debt instrument.
Shares are a type of debt instrument, while debentures represent ownership in a company.
Shares and debentures are the same things.
Neither shares nor debentures are used for business financing.
What is the main difference between debentures and bonds?
Debentures have a longer maturity period than bonds.
Bonds are issued in smaller denominations than debentures.
Debentures represent ownership in a company, while bonds are a type of debt instrument.
Bonds are typically issued by governments, while debentures are issued by companies.
What do shareholders receive in return for investing in a company?
Shareholders receive a portion of the company's profits in the form of dividends and have the right to vote on important company decisions.
How are bonds different from debentures?
Bonds are typically issued in larger denominations and have a longer maturity period than debentures.