SP 20 True or False with Reasons Important for Board Exam 2023.

4. State, with reason, whether the following statements are True or False. (any three) 15

A company can accept deposits repayable on demand. 

A private company can accept deposits from public. 

Convertible debentures can be converted into equity shares. 

Debenture holders are creditors of the company. 

Debenture holders are the owners of the company. 

Depositors’ approval is must for renewal of deposit. 

Dividend can be paid on advance amount of calls received. 

Equity shareholders are real owners and controllers of the company. Transfer of shares is initiated by the company. 

Financial management is essential for all types of organisation. 

Handling demat shares is very time consuming. 

It is not possible to go ahead without a financial plan. 

No dividend can be declared without making provisions for reserves and depreciation. 

Preference shareholders do not enjoy normal voting rights. 

Public deposit is good source for long term financing. 

Requirement of working capital does not depend upon any factor. 

Right shares are issued in general public. 

Debentures are never redeemed by the company. 

Rights shares are issued to the general public. 

Share certificate is a bearer document. 

Share transfer in depository mode is fast & economical.