Practice Test

Q1) Debenture is a ________ capital of a Joint Stock Company. Show Answer

Q2) Debenture holder is ______ of a company. Show Answer

Q3) Debenture capital is _______ capital. Show Answer

Q4) The amount of interest payable to the debenture holder is ______. Show Answer

Q5) Debenture holders get income in the form of _______. Show Answer

Q6) Convertible debentures are converted into _______ shares. Show Answer

Q7) The Companies Act authorizes ________ to issue debentures. Show Answer

Q8) Despatch of debentures Certificate must be made within _______ months of allotment. Show Answer

Q9) Indian Companies can raised equity capital in ______ market through Global Depository Receipt. Show Answer

Q10) Debenture holders are not invited for _______. Show Answer

Q11) The person purchasing a debenture of the company is known as ________ . Show Answer

Q12) Debentures to be refunded after the expiry of specific period are known as _______ debentures. Show Answer

Q13) Debentures which can be converted into equity shares or preference shares are ________ debentures. Show Answer

Q14) Debentures which can not be converted into equity shares or preference shares are ________ debentures. Show Answer

Q15) Debentureholders are the owners of the company. Show Answer

Q16) Debentureholders are entitled to get dividend. Show Answer

Q17) Debenture capital is loan capital of the company. Show Answer

Q18) Debentures are never redeemed by the Company. Show Answer

Q19) Interest on debenture depends on the company's profits. Show Answer

Q20) Debenture holders are not the memebers of the company. Show Answer

Q21) Debentures have a prior claim as regard to return of capital amount as compared to debentures. Show Answer

Q22) Secured debentures must be redeemed within _______ from the date of its issue. Show Answer

Q23) A company issuing _______ debenture must create a charge on the assets of the company. Show Answer

Q24) Debenture certificate must be issued within ______ of allotment of debentures. Show Answer

Q25) Procedure for allotment of debenture should be completed within ______ from the date of receipt of applications. Show Answer

Q26) The word debenture is taken from Latin word _______. Show Answer

Q27) Debenture Redemption Reserve shall be exclusively utilized for the purpose of ______ debenture. Show Answer

Q28) Money from _______ account is used for redemption of debentures. Show Answer

Q29) _______ protects the interest of debenture holders. Show Answer

Q30) The details of Allotment of debentures must be entered in ________. Show Answer

Q31) A company which issues prospectus or invites more than 500 persons to buy its debenture has to appoint _______. Show Answer

Q32) The contract between company and debenture trustees of companies is called as _______. Show Answer

Q33) Power to issue debenture rests with _______. Show Answer

Q34) Board of Directors have power to issue debenture. Show Answer

Q35) Debenture holders gets dividend. Show Answer

Q36) Debenture can be listed on stock exchange. Show Answer

Q37) Company issue debenture to its members, public or make it private placement. Show Answer

Q38) Company can appoint one/more debenture trustees to protect the interest of debenture holders. Show Answer

Q39) Company can issue any fully convertible debenture. Show Answer

Q40) A company raises debt capital through the issue of __________. Show Answer

Q41) All debentures are __________. Show Answer

Q42) A company cannot issue __________ with voting rights. Show Answer

Q43) Debenture holder get income in the form of__________. Show Answer

Q44) A company can issue __________ convertible debentures. Show Answer

Q45) Debenture holder is entitled to receive __________ certificate from the company. Show Answer

Q46) _______protect the interest of debenture holders. Show Answer

Q47) The Debenture Trustees can approach the __________ if a company defaults In the payment of interest on debentures. Show Answer

Q48) __________ can order a company to restrict incurring further liabilities so as to protect the interest of the debenture holders. Show Answer

Q49) Company has to maintain at least __________ of the value of its outstanding debentures in the Debenture Redemption Reserve Account. Show Answer

Q50) A company has to deposit an amount not less than __________ of the amount of debentures maturing during the year into DRR account. Show Answer

Q51) As per SEBI, the minimum subscription for public issue of debentures is __________ of base issue size. Show Answer

Q52) If the minimum subscription is not received, the entire money received should be refunded within __________ from the date of closure of the issue. Show Answer

Q53) Company can retain over subscription money up to maximum __________ of the base issue size. Show Answer

Q54) The resolution regarding the amount and type of debentures to be issued is taken in the __________. Show Answer

Q55) To increase the borrowing powers of the Board, shareholders' approval is taken by holding __________. Show Answer

Q56) Company issues __________ if it is inviting the public to buy its debentures. Show Answer

Q57) Company issues __________ if it makes private placement of debentures. Show Answer

Q58) Secretary has to make entries in the Register of Debenture holders within __________ after the Board approval of allotment. Show Answer

Q59) The company creates a charge on the assets for secured debentures in favour of the __________. Show Answer

Q60) __________ is a legal instrument conveying the assets of a company to the Trustees. Show Answer

Q61) Debenture holders are the owners of the company. Show Answer

Q62) Debentures are issued to raise short term finance for the company. Show Answer

Q63) Debenture is a loan capital of the company. Show Answer

Q64) A company can issue debentures to its members. Show Answer

Q65) Debenture Holders are the creditors of the company. Show Answer

Q66) Debenture holders have no voting rights. Show Answer

Q67) Debenture holders can participate in the management of the company. Show Answer

Q68) Company cannot issue non-convertible debentures. Show Answer

Q69) Special Resolution is needed to issue convertible debentures. Show Answer

Q70) Debentures holders are paid interest. Show Answer

Q71) Debenture certificate is issued within 6 months of allotment of debentures. Show Answer

Q72) Debenture trustees are appointed to protect the interest of shareholders. Show Answer

Q73) The contract between the company and debenture holders is called Debenture Trust Deed. Show Answer

Q74) Debenture Trustees cannot approach NCLT to redress grievances of debenture holders. Show Answer

Q75) All secured debentures should be redeemed within 20 years from date of its issue. Show Answer

Q76) Company has to create a charge on its assets when it issues secured debentures. Show Answer

Q77) Company has to invest or deposit the specified amount in Debenture Redemption Reserve Account on or before 31st April each year. Show Answer

Q78) The company has to obtain credit rating from NCLT. Show Answer

Q79) A company issues prospectus if it makes private placement of its debentures. Show Answer

Q80) After allotment of debentures, their names are entered in the register of members. Show Answer

Q81) A company need not maintain the Register of Debenture holders if debentures are issued in de mat form. Show Answer

Q82) The charge on assets for secured debentures is created in favour of the debenture holders. Show Answer

Q83) Members and debenture holders have the right to inspect the Trust Deed. Show Answer