Practicing Success
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): A company can issue debentures for raising long-term borrowings. |
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion(A). Both Assertion (A) and Reason (R) are true, but ( A ) Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true, but Reason (R) is false. Assertion (A) is false and Reason(R) is also false. |
Assertion (A) is true, but Reason (R) is false. |
Most companies turn to raising long-term funds also through debentures which are issued either through the route of private placement or by offering the same to the public. The finances raised through debentures are also known as long-term debt. It is mentioned in the Memorandum of Association of the company. |