What is the primary distinguishing feature of unsecured debentures?
Answer & explanation
Correct answer: option 2
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.