Final Ch. 22 Flashcards Preview

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Flashcards in Final Ch. 22 Deck (11)
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1
Q

rights of shareholders (3)

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

dividends

A

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

3
Q

debentures

A

not secured by physical assets or collateral

- backed only by the creditworthiness and reputation of the issuer

4
Q

types of debentures (3)

A
  1. single debenture
  2. series debentures
  3. debenture stock
5
Q

single debenture

A

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

6
Q

series debentures

A

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

7
Q

debenture stock

A

may be offered to the public through Stock Exchange

8
Q

chargeable assets

A

property of the company which is security for debentures

9
Q

types of charges (2)

A
  1. fixed charges

2. floating charges

10
Q

fixed charges

A

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

11
Q

floating charges

A

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