Question

Unsecured debentures:

Options

• simple debentures

• naked debentures

• collateralised debentures

• Both simple debentures and naked debentures

Answer 1

Both simple debentures and naked debentures

Explanation:

• Simple debentures: because they are issued without any security or charge on the company’s assets.
• Naked debentures: for the same reason, as they are not backed by any collateral.