Correct Answer: Assertion is true, but the reason is false.

Solution : The correct answer is (c) Assertion is true, but the reason is false.

The assertion is true. Equity shareholders indeed have ownership rights in a company, which means they have a claim on the company's assets and earnings. However, their voting power can be limited depending on the company's structure and the number of shares they hold.

The reason is false. Unlike preferred shareholders who are typically entitled to receive fixed dividends, equity shareholders (common shareholders) do not have a guaranteed or fixed dividend. Dividends for equity shareholders are decided by the company's board of directors and are subject to the company's profitability and dividend policy.

Correct Answer: Both statements 1 and 2 are true.

Solution : The correct answer is (c) Both statements 1 and 2 are true.

Statement 1 is true. Equity shareholders have ownership rights in the company. They hold shares that represent ownership stakes in the company and have voting power, allowing them to participate in company decisions and influence important matters through voting on various issues.

Statement 2 is true. Equity shareholders may or may not receive dividends, depending on the company's dividend policy and financial performance. Dividends are a distribution of a portion of a company's earnings to its shareholders, but they are not guaranteed and are subject to the company's profitability, cash flow, and decisions of the board of directors.

Correct Answer: Selling
 

Solution : Selling is a narrow concept which is restricted to promotion of goods and services through salesmanship, advertising, publicity and short term incentive so that the title of the product is transferred from seller to buyer. Selling aims to transfer ownership of the goods through aggressive promotion.

Hence, option A is correct.
 

Correct Answer: Settlement

Solution : The correct answer is (c) Settlement

The term used to describe the process of transferring ownership of securities from a seller to a buyer is "settlement." In the context of stock trading, after the buy and sell orders have been matched and executed (which is the "execution of the order"), the process of settling the trade involves transferring the ownership of the securities and the funds between the parties involved. It includes the confirmation, verification, and actual transfer of the securities and payment. This ensures that the buyer receives the securities they purchased and the seller receives the funds for the sale.

Correct Answer: Ownership in the company
 

Solution : The correct answer is (b) Ownership in the company

Equity shares represent ownership in a company and entitle shareholders to a portion of the company's profits, distributed in the form of dividends. Unlike debt instruments, such as bonds, equity shares do not come with fixed dividend payments, guaranteed redemption, or specific fixed interest rates. Additionally, equity shareholders typically have voting rights, allowing them to participate in important decisions and the governance of the company.

Correct Answer: Debentures pay fixed dividends
  

Solution : The correct answer is (b) Debentures pay fixed interest

This statement is correct. Debentures pay fixed interest to debenture holders, not dividends. The interest rate is predetermined and agreed upon at the time of issuing the debentures.

Correct Answer: Empowerment and autonomy

Solution : The correct answer is (c) Empowerment and autonomy.

Empowerment and autonomy in leadership involve providing individuals with the authority, responsibility, and freedom to make decisions and take ownership of their work. By valuing employee well-being and encouraging them to take ownership, the CEO is empowering the employees and granting them the autonomy to manage their tasks and contribute to the organization's success. This approach fosters a sense of accountability, motivation, and engagement among employees.

Correct Answer: Both enable companies to raise funds in international markets

Solution : The correct answer is (d) Both enable companies to raise funds in international markets

GDRs (Global Depositary Receipts) and ADRs (American Depositary Receipts) serve similar functions in that they both allow companies to raise funds in international markets. GDRs are negotiable financial instruments issued by a depositary bank, typically in a country other than where the issuing company is based. They represent a claim to shares in a foreign company and are traded on international stock exchanges. GDRs enable companies to raise capital from investors in international markets.

ADRs are a specific type of GDR that represents shares of non-U.S. companies traded on U.S. stock exchanges. They make it easier for non-U.S. companies to attract investment from American investors by facilitating trading of their shares in the U.S. financial markets.

Both GDRs and ADRs play a crucial role in allowing companies to access international capital markets and attract investment from a broader investor base outside their home countries.

Correct Answer: Both enable companies to raise funds in international markets

Solution : The correct answer is (d) Both enable companies to raise funds in international markets

GDRs (Global Depositary Receipts) and ADRs (American Depositary Receipts) serve similar functions in that they both allow companies to raise funds in international markets. GDRs are negotiable financial instruments issued by a depositary bank, typically in a country other than where the issuing company is based. They represent a claim to shares in a foreign company and are traded on international stock exchanges. GDRs enable companies to raise capital from investors in international markets.

ADRs are a specific type of GDR that represents shares of non-U.S. companies traded on U.S. stock exchanges. They make it easier for non-U.S. companies to attract investment from American investors by facilitating trading of their shares in the U.S. financial markets.

Both GDRs and ADRs play a crucial role in allowing companies to access international capital markets and attract investment from a broader investor base outside their home countries.

Correct Answer: Ownership in the company
   

Solution : The correct answer is (b) Ownership in the company

Equity shares represent ownership or equity ownership in a company. Shareholders who hold equity shares have ownership rights in the company, which typically includes voting rights, the right to share in the company's profits (through dividends), and the right to participate in decision-making processes related to the company's operations and policies. Unlike debt securities (e.g., debentures), equity shares do not guarantee fixed interest payments or redemption; instead, the dividend payments to equity shareholders are variable and based on the company's profitability and the decisions of the company's board of directors.