Select the correct answer from the options given below and rewrite the statements.

1. …………….. is a smallest unit in the total share capital of the company.
a) Debenture     b) Bonds      c) Share
Ans: c) Share

2. The benefit of Depository Receipt is ability to raise capital in …………….. market.
a) National       b) Local        c) International
Ans: c) International

3. …………….. are residual claimants against the income or assets of the company.
a) Bondholders      b) Equity Shareholders      c) Debentureholders
Ans: b) Equity Shareholders

4. …………….. participate in the management of their company.
a) Preference shareholders      b) Depositors      c) Equity shareholders
Ans: c) Equity shareholders

5. …………….. shares are issued free of cost to existing equity shareholders.
a) Bonus      b) Right      c) Equity
Ans: a) Bonus

6. The holder of preference share has right to receive …………….. rate of divided.
a) fixed      b) fluctuating      c) lower
Ans: a) fixed

7. Accumulated dividend is paid to …………….. preference shares.
a) redeemable      b) cumulative      c) convertible
Ans: b) cumulative

8. The holder of …………….. preference shares have right to convert their shares into equity
shares.
a) cumulative      b) convertible      c) redeemable
Ans: b) convertible

9. Debenture holders are …………….. of the company.
a) creditors      b) owners      c) suppliers
Ans: a) creditors

10. …………….. is paid on borrowed capital.
a) Interest      b) Discount      c) Dividend
Ans: a) Interest

11. Debentureholders get fixed rate of …………….. as return on their investment.
a) interest      b) dividend      c) discount
Ans: a) interest

12. Convertible debentures are converted into…………….. after a specific period.
a) equity shares      b) deposits      c) bonds
Ans: a) equity shares

13. Retained earnings are …………….. source of financing.
a) internal      b) external      c) additional
Ans: a) internal

14. The holder of bond is …………….. of the company.
a) secretary      b) owner      c) creditor
Ans: c) creditor

15. Company can accept deposits from public, minimum for …………….. months.
a) six      b) nine      c) twelve
Ans: a) six

16. Company can accept deposits from public, maximum for …………….. months.
a) 12      b) 24      c) 36
Ans: c) 36

17. A depository receipt traded in …………….. is called American Depository receipt.
a) London      b) Japan      c) U.S.A.
Ans: c) U.S.A.