Accounting Multiple Choice Question – 26 August 2021

What right does convertible loan stock give the investor?

Select ONE answer:

1. Current asset investments are included under ‘management of liquid reso acquire ordinary shares in the company at a given price in addition to the loan stock
2. to obtain higher rates of interest on future convertible loan stock
3. to convert the loan into ordinary shares issued at a discount
4. to convert the loan into ordinary shares at a given future date and at a specified price

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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