Final Ch. 22

Question 1

rights of shareholders (3)

Answer 1

1. dividends
2. recover capital value of their shares if the company goes into liquidation
3. transfer their shares

Question 2

dividends

Answer 2

sum of money paid regularly by a company to its shareholders out of its profits

Question 3

debentures

Answer 3

not secured by physical assets or collateral

- backed only by the creditworthiness and reputation of the issuer

Question 4

types of debentures (3)

Answer 4

1. single debenture
2. series debentures
3. debenture stock

Question 5

single debenture

Answer 5

loan to the company from any person or organisation prepared to lend it the money

Question 6

series debentures

Answer 6

the company may look to its own members for loans and issue a series of debentures to participants who have equal rights to repayment

Question 7

debenture stock

Answer 7

may be offered to the public through Stock Exchange

Question 8

chargeable assets

Answer 8

property of the company which is security for debentures

Question 9

types of charges (2)

Answer 9

1. fixed charges

2. floating charges

Question 10

fixed charges

Answer 10

specific assets to the value of the loan linked with it as soon as the charge is created

Question 11

floating charges

Answer 11

repayment of its loan from any of the assets held by the company at the time of repayment