Advertisements
Advertisements
Question
A Debenture issued by a company by creating a fixed or a floating charge on the company's assets is known as ______.
Options
Non-Convertible Debenture
Mortgage Debenture
Redeemable Debenture
Unsecured Debenture
Advertisements
Solution
A Debenture issued by a company by creating a fixed or a floating charge on the company's assets is known as Mortgage Debenture.
Explanation:
A mortgage debenture is secured by the issuing company's real estate or other physical assets. These assets act as collateral for debenture holders in case the company fails to make payments. If the corporation fails to meet its commitments, debenture holders can assert their claim on the mortgaged assets to recoup their investment.
APPEARS IN
RELATED QUESTIONS
The debentures which are convertible into shares.
Answer in a sentence only.
What do you mean by Bearer Debenture?
Answer in a sentence only.
What is meant by ‘Mortgaged Debenture’?
Write one word/term/phrase which can substitute the following
The debentures where no charge is created on the assets of company.
Write one word/term/phrase which can substitute the following
The debentures of which the payment is not made until the winding up of company.
Write one word/term/phrase which can substitute the following
The debentures which are not converted into shares.
State to whether the following statement is True/False.
Unsecured debentures are safer than secured debentures.
Answer the following question in one sentence.
What are ‘convertible debentures’?
Explain any four types of debentures through which a public limited company can collect its borrowed capital from the public.
Random Ltd. took over running business of Mature Ltd. comprising of Assets of ₹ 45,00,000 and Liabilities of ₹ 6,40,000 for a purchase consideration of ₹ 36,00,000. The amount was settled by bank draft of ₹ 1,50,000 and balance by issuing 12% preference shares of ₹ 100 each at 15% premium. Pass entries in the books of Random Ltd.
