UPSC Civil Services 2025 Prelims General Studies Paper I

Question : 7 of 100

Marks: +1, -0

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?

Both Statement II and Statement III are correct and both of them explain Statement I
Both Statement I and Statement II are correct and Statement I explains Statement II
Only one of the Statements II and III is correct and that explains Statement I
Neither Statement II nor Statement III is correct

Validate

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