Advertisements
Advertisements
Question
Which of the following are the features of debenture?
Options
Debentures represent borrowed funds.
Interest on debentures is paid at a fixed rate.
Debentures generally carry voting rights.
Debentures does not involve a charge on the assets of the company.
Solution
Debentures represent borrowed funds and interest on debentures is paid at a fixed rate.
Explanation:
The main features of debentures are as follows:
- Debentures represent borrowed funds.
- Interest on debentures is paid at a fixed rate.
- Interest is payable every year irrespective of whether there are profits or not.
- Debentures generally carry no voting rights.
APPEARS IN
RELATED QUESTIONS
Write a short note on Debentures.
Write any two differences between Shares and Debentures.
Debentures represent ______.
Which kind of investment, give investors voting rights, for choosing management people in the organisation?
They are known as creditorship securities.
Differentiate between convertible and non-convertible debentures.
State any three advantages of debenture issue as a source of finance.
Explain Debentures.
Discuss the importance of debentures as sources of medium and short-term finance.
Discuss the disadvantages of raising finance through debentures.
