Question

Assertion (A): Irredeemable debentures are also known as perpetual debentures.

Reason (R): The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company.

Choose the correct option from the following.

पर्याय

• Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is incorrect, but Reason (R) is correct.

• Assertion (A) is correct, but Reason (R) is incorrect.

Answer 1

Assertion (A) is correct, but Reason (R) is incorrect.