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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.
Borrowed Capital is provided to the company by ______.
Select the correct answer from the options given below and rewrite the statement.
Return of income on debentures is ______ at fixed rate.
State whether the following statement is true or false.
Interest on debentures is paid notwithstanding the volume of profit.
State whether the following statement is true or false.
Dividend warrants are used to pay interest to the debenture holders.
Find the odd one.
Find the odd one.
Complete the sentence.
Debenture holder is a ______ of the company.
Complete the sentence.
In case of Registered Debentures, Interest ______ are used to pay interest.
Complete the sentence.
The ______has to correspond with debenture holders on important occasions.
Complete the sentence.
Interest does not depend upon ______ of the company.
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.
The power to issue debentures has been vested with the ______.
Select the correct option.
____________ Debenture.
Select the correct option.
____________ Power to issue debentures.
Answer in one sentence.
Who is debenture holder?
Explain the following term/concept.
Debenture holder
Answer in brief.
What are the circumstances under which correspondence can be made with debenture holders?
Justify the following statement.
The company secretary should take certain precautions while corresponding with debenture holders.
