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Question
Explain the following term/concept.
Debentures
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Solution
Debentures are debt instruments issued by a company to raise capital. Debenture capital is the borrowed capital of a company. A debenture is an acknowledgement of the debt. Debentures are issued for a specific period and it carries a fixed rate of interest as a return on the investment in debentures.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Debenture holders are ______ of the company.
Bearer debentureholders get interest through ______.
Select the correct answer from the options given below and rewrite the statement.
Return of income on debentures is ______ at fixed rate.
Match the pairs.
| Group ‘A' | Group ‘B' |
| a) Debentureholder | 1) Borrowed Capital |
| b) Interest on Debentures | 2) Interest coupons |
| c) Convertible Debentures | 3) Evidence of Loan |
| d) Debenture Certificate | 4) Safe and secured investment |
| e) Investment in Debentures | 5) Interest warrant |
| f) Redeemable Debentures | 6) Conversion into Debentures |
| g) Debentures | 7) Risky investment |
| 8) Evidence of shares | |
| 9) Creditor | |
| 10) Conversion into equity shares | |
| 11) Redeemed after fixed period | |
| 12) Redeemed at winding up of company | |
| 13) Owner | |
| 14) Owned Capital |
State whether the following statement is true or false.
Debentures are never redeemed by the company.
State whether the following statement is true or false.
Debenture holders are the owners of the company.
Find the odd one.
Complete the sentence.
Debenture holder gets ______ at fixed rate as a return or income.
Complete the sentence.
In case of Registered Debentures, Interest ______ are used to pay interest.
Complete the sentence.
Interest does not depend upon ______ of the company.
Complete the sentence.
Company cannot issue debentures with ______ rights.
Select the correct option.
____________ Debentureholders.
Select the correct option.
____________ Debenture.
Answer in one sentence.
Who is debenture holder?
Correct the underlined word and rewrite the following sentence.
The person who purchases debentures of the company is called shareholder.
Explain the following term/concept.
Debenture holder
Explain the following term/concept.
Precise information
Explain the following term/concept.
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