CUET Preparation Today
What is the primary distinguishing feature of unsecured debentures? |
They always have a fixed charge on assets They do not have any charge on assets They are always issued with a floating charge They involve a fixed charge on specific assets |
They do not have any charge on assets |
Unsecured debentures, also known as "debentures without security" or "unsecured bonds," do not have any specific charge or claim on the assets of the company. Unlike secured debentures, which are backed by a charge on specific assets, unsecured debentures lack this collateral. Therefore, unsecured debenture holders do not have a direct claim on the company's assets in case of default. |
