Question :
The debentures that are not repayable during the lifetime of the company and hence are repaid only when the company is liquidated are called as
Option 1: Redeemable debentures
Option 2: Irredeemable debentures
Option 3: Secured debentures
Option 4: Unsecured debentures
Correct Answer: Redeemable debentures
Solution : Answer = Redeemable debentures
Debentures that are not repayable during the lifetime of the company and are only repaid upon liquidation are called redeemable debentures. Unlike irredeemable debentures, which have no fixed repayment date, redeemable debentures have a predetermined maturity date, at which point the company repays the principal amount to the debenture holders.
Hence, the correct option is 1.