Question : Which of the following statements is false?
Option 1: A Company Can issue Convertible debenture
Option 2: Debenture can not be secured
Option 3: Company can issue redeemable debenture
Option 4: Debenture have no right to participate in profit over and above their fixed interest
Correct Answer: Debenture can not be secured
Solution : A secured debenture is one that is supported by collateral. In other words, the lender gets a sort of insurance against not getting paid back on the loan. If the borrower is in default and unable to repay the loan, the lender may redeem the debt by taking possession of the borrower's assets.
Hence the correct answer is option 2.
Question : Which of the following statements is true?
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