16 Views
Question : Debentures are:
Option 1: Issued by government authorities
Option 2: Always secured by assets of the company
Option 3: Long-term debt instruments
Option 4: None of the above
Answer (1)
Correct Answer: Long-term debt instruments
Solution : The correct answer is (c) Long-term debt instruments
Debentures are long-term debt instruments issued by companies or corporations to borrow funds from investors. They represent a loan agreement between the issuing company and the debenture holders. The debenture holders lend money to the company and, in return, receive fixed interest payments at a predetermined rate and a specified maturity date for the repayment of the principal amount.
Related Questions
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
Indrashil University | B.Tech...
Apply
Apply for B.Tech | AICTE Aproved | UGC Recognized | International Collaborations for Global Edge | 100% Placement Assistance
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024)
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries