Business Studies

___________ debentures are those that do not carry any charge or security on the assets of the company.


ANSWER

Unsecured


SOLUTION
Unsecured debentures are debentures that are not supported by a collateral security. No specific assets will be set aside against unsecured debentures. It is basically a loan with out any protection. They are backed only by the general creditworthiness of the issuer.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 199
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Which of the following rights may be given to preference shareholder if provided by Articles?
  • A. To participate in the surplus remaining after the equity shares are redeemed in winding up.
  • B. To participate in the surplus profits remaining after payment of equity dividend.
  • C. To receive arrears of dividend at the time of winding up.
  • D. All of the above.

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
If forfeited shares are re-issued at a premium, the amount of such premium should be creted to ______________.
  • A. Capital Reserve Account
  • B. Securities Premium Account
  • C. Revenue Reserve Account
  • D. Profit & Loss Account

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
__________ debentures are those debentures that can be converted into equity shares after the expiry of a specified period.
  • A. Secured
  • B. Unsecured
  • C. Registered
  • D. Convertible

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
The shares of a company are________. 
  • A. non-transferable
  • B. fixed
  • C. none of the above
  • D. transferable

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Equity shares are suitable for investors who are willing to assume risk for ________ returns.
  • A. Lower
  • B. Higher
  • C. Medium
  • D. Equal

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer