(a) Explain the differences between Recruitment and Selection.

OR

(b) Write the differences between Shares and Debentures.

Question

(a) Explain the differences between Recruitment and Selection.

OR

(b) Write the differences between Shares and Debentures.

Accepted Answer

>

> [!TLDR]
> (a) Recruitment attracts a pool of applicants (positive); selection screens and chooses the best from that pool (negative). (b) Shares represent ownership and earn dividend; debentures represent debt and earn fixed interest.
>
> **(a) Differences between Recruitment and Selection**
>
> | Basis | Recruitment | Selection |
> |---|---|---|
> | **Meaning** | Process of **searching for and attracting** prospective candidates to apply | Process of **choosing the most suitable** candidates and rejecting the rest |
> | **Nature** | A **positive** process (invites more applicants) | A **negative** process (rejects unsuitable applicants) |
> | **Objective** | To create a **large pool** of applicants | To **pick the right person** for the job |
> | **Sequence** | Comes **first** | Comes **after** recruitment |
> | **Contract** | No contractual relation arises | Leads to an **employment contract** with the selected person |
> | **Method** | Advertising, referrals, job portals, etc. | Screening, tests, interviews, verification |
>
> **(b) Differences between Shares and Debentures**
>
> | Basis | Shares | Debentures |
> |---|---|---|
> | **Meaning** | Unit of **ownership capital** of the company | Acknowledgement of a **loan/debt** to the company |
> | **Status of holder** | Shareholder is an **owner/member** | Debenture holder is a **creditor** |
> | **Return** | Gets **dividend**, which varies with profit | Gets **fixed interest**, whether or not there is profit |
> | **Payment priority** | Dividend paid **after** interest | Interest is a **charge on profit**, paid before dividend |
> | **Voting rights** | Shareholders usually have **voting rights** | Debenture holders have **no voting rights** | …

Basis	Recruitment	Selection
Meaning	Process of searching for and attracting prospective candidates to apply	Process of choosing the most suitable candidates and rejecting the rest
Nature	A positive process (invites more applicants)	A negative process (rejects unsuitable applicants)
Objective	To create a large pool of applicants	To pick the right person for the job
Sequence	Comes first	Comes after recruitment
Contract	No contractual relation arises	Leads to an employment contract with the selected person
Method	Advertising, referrals, job portals, etc.	Screening, tests, interviews, verification

Basis	Shares	Debentures
Meaning	Unit of ownership capital of the company	Acknowledgement of a loan/debt to the company
Status of holder	Shareholder is an owner/member	Debenture holder is a creditor
Return	Gets dividend, which varies with profit	Gets fixed interest, whether or not there is profit
Payment priority	Dividend paid after interest	Interest is a charge on profit, paid before dividend
Voting rights	Shareholders usually have voting rights	Debenture holders have no voting rights

Q.(a) Explain the differences between Recruitment and Selection.

Concept understanding — Recruitment and Selection Distinguished

Q.(a) Explain the differences between Recruitment and Selection.

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