The correct answer is option 3- A business can issue debentures with voting rights.
* A business can issue debentures with voting rights- This is false as Companies do not issue debentures with voting rights. Shareholders enjoy voting rights whereas debenture holders do not normally enjoy any voting right.
OTHER OPTIONS-
- A company can buy its own debentures- When a company purchases its own debentures in the open market for the purpose of immediate cancellation, the purchase and cancellation of such debentures are termed as redemption by purchase in the open market. The advantage of such an option is that a company can redeem the debentures at its convenience whenever it has surplus funds. Secondly, the company can purchase them when they are available in market at a discount.
- A Company can issue convertible debentures- Debentures which are convertible into equity shares or in any other security either at the option of the company or the debenture holders are called convertible debentures. These debentures are either fully convertible or partly convertible.
- A company can issue redeemable debentures- Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in Installments during the life time of the company. Debentures can be redeemed either at par or at premium.
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