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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
Debenture capital is a ______ capital of a company.
Select the correct answer from the options given below and rewrite the statement.
______ are the creditors of the company.
Write a word or a term or a phrase which can substitute the following statement.
Status of debenture holders.
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.
Debenture holders get regular dividend.
Find the odd one.
Find the odd one.
Find the odd one.
Complete the sentence.
Company issues ______ certificate to the debenture holder after allotment of debentures.
Complete the sentence.
In case of Registered Debentures, Interest ______ are used to pay interest.
Complete the sentence.
The person who purchases the debentures of a company is called ______
Complete the sentence.
Company cannot issue debentures with ______ rights.
Complete the sentence.
Debenture certificate should be issued within a period of ______ months, from the date of allotment of debentures.
Complete the sentence.
A company cannot issue debentures to more than 500 people without appointing a ______.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Return on Debentures | 1) __________________ |
| b) Debenture certificate | 2) __________________ |
| c) __________________ | 3) Debentureholders |
| d) __________________ | 4) Debenture |
| e) __________________ | 5) Power to issue debentures |
Select the correct option.
Return on Debentures ____________.
Select the correct option.
Debenture certificate ____________.
Answer in one sentence.
What is the income of debenture holder?
Correct the underlined word and rewrite the following sentence.
Debenture holders get regular dividend at fixed rate.
Justify the following statement.
The company secretary should take certain precautions while corresponding with debenture holders.
