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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Debenture holders do not enjoy any voting right.
Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false .
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A)...
Debenture holders are only the creditor of the company as debentures are the part of loan.
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Directions : In the following questions, a statement of Assertion (A)...
Assertion (A): Debenture holders do not enjoy any voting right.
Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.
The correct answer is option 'A': Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Debentures are long-term debt instruments issued by companies to raise funds from the public. They are essentially loans taken by the company from the debenture holders, who are the lenders. Debenture holders are not considered as owners of the company, unlike shareholders who hold equity shares and have ownership rights.
Assertion (A): Debenture holders do not enjoy any voting right.
Debenture holders do not have any voting rights in the company. They are not eligible to participate in the decision-making process or have a say in the management of the company. The voting rights are exclusive to the shareholders who have invested in the company by purchasing equity shares.
Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.
The reason for debenture holders not having voting rights is that they are merely lenders to the company. When a person buys debentures, they are essentially lending money to the company in exchange for interest payments. They do not become owners of the company or have any claim on the assets or profits of the company. Therefore, they do not have the right to participate in the decision-making process or vote on company matters.
Conclusion:
Debenture holders do not enjoy any voting right because they are not owners of the company. They are lenders who provide funds to the company in exchange for fixed interest payments. Shareholders, on the other hand, are the owners of the company and have voting rights in proportion to their shareholding.
Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.
The correct answer is option 'A': Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Explanation:
Debentures are long-term debt instruments issued by companies to raise funds from the public. They are essentially loans taken by the company from the debenture holders, who are the lenders. Debenture holders are not considered as owners of the company, unlike shareholders who hold equity shares and have ownership rights.
Assertion (A): Debenture holders do not enjoy any voting right.
Debenture holders do not have any voting rights in the company. They are not eligible to participate in the decision-making process or have a say in the management of the company. The voting rights are exclusive to the shareholders who have invested in the company by purchasing equity shares.
Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.
The reason for debenture holders not having voting rights is that they are merely lenders to the company. When a person buys debentures, they are essentially lending money to the company in exchange for interest payments. They do not become owners of the company or have any claim on the assets or profits of the company. Therefore, they do not have the right to participate in the decision-making process or vote on company matters.
Conclusion:
Debenture holders do not enjoy any voting right because they are not owners of the company. They are lenders who provide funds to the company in exchange for fixed interest payments. Shareholders, on the other hand, are the owners of the company and have voting rights in proportion to their shareholding.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Debenture holders do not enjoy any voting right.Reason (R): A debenture holder just lends money but does not become an owner of the company with the purchase of debentures.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false .d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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