Advertisements
Advertisements
Question
The holder of bond is ______ of the company.
Options
secretary
owner
creditor
MCQ
Fill in the Blanks
Solution
The holder of bond is creditor of the company.
Explanation:
- A bondholder lends money to the company and, in return, receives periodic interest and the principal amount upon maturity.
- Unlike shareholders, bondholders do not own a part of the company but have a claim on its assets in case of liquidation.
shaalaa.com
Sources of Borrowed Capital - Bonds
Is there an error in this question or solution?
Chapter 2: Sources of Corporate Finance - Exercises [Page 34]
RELATED QUESTIONS
State whether the following statement is true or false.
Bond holders are owners of the company.
Complete the sentence.
The bond holders are ______ of the company.
Answer in one sentence.
What is a bond?
Correct the underlined word and rewrite the following sentence.
Bond is a source of short term finance.
Answer in brief.
State the features of Bonds.
Justify the following statement.
Bond holder is creditor of the company.
Explain the following term/concept in detail:
Bond
