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Question
Which of the following is Correct with respect to debentures?
Options
They can be issued on credit.
They can be issued for consideration other than cash.
They cannot be issued as collateral security.
They can be issued partly on credit and partly in cash.
MCQ
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Solution
They can be issued for consideration other than cash.
Explanation:
A company can issue debentures to a vendor for purchasing assets or a business. Therefore, debentures can be issued for consideration other than cash.
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