BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Shareholders are the owners of a company whereas debtholders own debt issued by a company.
|
|
|
Shareholders are not different from debtholders as both hold stakes in a company.
|
|
|
Shareholders provide money when starting a company whereas debtholders supply funds during its course of business.
|
|
|
Shareholders have less rights than debtholders who have the actual control over a company.
|
Detailed explanation-1: -Shareholders are owners of the company whereas debtholders are lenders to the company. A debtholder is one who receives the same payment no matter how well an organization does.
Detailed explanation-2: -Unlike the owners of sole proprietorships or partnerships, corporate shareholders are not personally liable for the company’s debts and other financial obligations. Therefore, if a company becomes insolvent, its creditors cannot target a shareholder’s personal assets.
Detailed explanation-3: -Equityholders are normally giv bring derivative suits against managers, but debtholder holders are given no protection unless they put provisi contract, ” whereas equityholders are given many prote rate law even if they are silent in their contracting an protections are, as discussed below, mandatory and cann out.
Detailed explanation-4: -A shareholder becomes a member once his name is entered into the company’s register of members or if he is a subscriber to the constitution of the company. A member of a company limited by guarantee is not a shareholder because there is no share capital in the company.