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UPSC IAS - 2025
Consider the following statements: Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders. Statement II: Bondholders are lenders to a company whereas stockholders are its owners. Statement III: For repayment purpose, bondholders are prioritized over stockholders by a company. Which one of the following is correct in respect of the above statements?
Year Asked: 2025
A
a) Both Statement II and Statement III are correct and both of them explain Statement I
B
b) Both Statement I and Statement II are correct and Statement I explains Statement II
C
c) Only one of the Statements II and III is correct and that explains Statement I
D
d) Neither Statement II nor Statement III is correct
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