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?

Question

Examsnet · Accepted Answer

Correct Answer is : Both Statement II and Statement III are correct and both of them explain Statement I

UPSC Civil Services 2025 Prelims General Studies Paper I