Q.1(A) Answer in one sentence (5m)
1.What is fixed capital ?
2.What are convertible debentures ?
3. What is share certificate ?
4. Who are debenture holders ?
5. What is deposit Trust Deed ?
Answers
Answer:
1) fixed capital is any kind of real, physical asset that is used repeatedly in the production of a product. In economics, fixed capital is a type of capital good that as a real, physical asset is used as a means of production which is durable or isn't fully consumed in a single time period.
2)In finance, a convertible bond or convertible note or convertible debt is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features
3)A share Certificate refers to a document which is issued by a company evidencing that a person named in such certificate is the owner of the shares of Company as stated in the share certificate. The Indian Companies Act mandates companies for issuing share certificates post their incorporation.
4)A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. ... A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. Shareholders are invited to attend the annual general meeting of the company
5)1. Covenants stating the purpose of raising finance through the deposit scheme;
2. ... An undertaking by the company to pay the interest and principal amount of such deposits to the depositors as and when it becomes due, as per the terms of the scheme;
Answer:
1) In accounting,fixed capital is any kind of real physical asset that is used repeatedly in the production of products.
2) Convertible debentures is a debt security than can be converted into stock or equity shares.
3) A share certificate is a document issued by company evidencing that the person named in the certificate is the owner of the numbers of shares of the company as specified in the certificate.
4) A person having the debentures is called debenture holders.
5) Convenants stating the purpose of raising finance thought the deposit scheme.