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NEW QUESTION: 1
A. Option A
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NEW QUESTION: 3
Which of the following is NOT a correct distinction between shares and debentures?
A. Both share and debenture holders are members of the company and entitled to vote.
B. Debenture interest is deductible from gross profit in order to determine taxable profit. Dividends are profits.
C. If a company is in insolvent liquidation debenture holders are paid in priority to shareholders.
D. Unlike dividends, debenture interest must be paid, even if a company is trading at a loss.
Answer: A
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