Business Studies

Discount on issue of debentures is ____________.


ANSWER

Capital loss


SOLUTION
 Capital Loss :-

A capital loss is the loss incurred when a capital asset, such as an investment or real estate, decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price. 
Capital losses are generally tax deductible, but only when they are realized. That is, they only become deductible when the asset is actually sold (unless the stock is legally deemed worthless). Until that point, any losses are considered unrealized and are not deductible. 
The IRS considers nearly every asset owned by individuals and companies as capital assets and thus subject to capital gains taxes and capital loss deductions.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 218
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
As per section 2(51) of the Companies Act, 2013, "Key Managerial Personnel", in relation to a company, means _______.
(i) Chief Executive officer or managing director or manager
(ii) Company Secretary
(iii) General Manager
(iv) Whole Time Director
(v) Chief Legal Officer 
(vi) Chief Financial Officer
The correct answer is -
  • A. (i), (ii), (iv) & (vi)
  • B. (i), (iii), (iv), (v) & (vi)
  • C. (i), (ii), (v) & (vi)
  • D. (i), (iv), (v) & (vi)

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
American depository receipt fee varies from one cent to ___ cents per share depending upon the ADR amount and its timing.
  • A. Four
  • B. Three
  • C. Five
  • D. Ten

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Assertion & Reason Medium
ASSERTION

Acquiring control over other companies has becomes a favourate method to build up an industrial empire.

REASON

The Holding company method of business combination facilitates creation of closely linked group of companies with interest in mutual well-being.

  • A. Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
  • B. Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
  • C. Assertion is correct but Reason is incorrect
  • D. Assertion is incorrect but Reason is correct

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
Company may retain a part of the profits called as ______ and utilize it as capital.
  • A. retained earnings
  • B. debentures
  • C. reserves and surplus
  • D. shares

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
The means of obtaining financial resources that involves the sale of part of the ownership of the business is called ______.
  • A. bankruptcy
  • B. commercial loans
  • C. debt financing
  • D. equity financing

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer