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 specific charge on assets They involve a fixed charge on specific assets They involve a fixed charge on depreciable assets |
They do not have any specific charge on assets |
The correct answer is option 2- They do not have any specific charge on assets. Unsecured debentures do not have any charge on assets. Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued. |
