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1. |
What is the difference between Debentures and Equity? |
A. | Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding |
B. | An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount |
C. | Equity shareholding is more risky, compared to debentures which are bound to return good interest on the principal |
D. | Both debenture and equity holders have the right of voting irrespective of the proportion of holdings but debentures are of lower value than equity |
Answer» B. An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount | |