What is the name of the charge on which secured debentures are issued with a charge on the general assets of the company?
Answer & explanation
Correct answer: option 2
Secured debentures refer to those debentures
where a charge is created on the assets of the company for the purpose
of payment in case of default. The charge may be fixed or floating. A
fixed charge is created on a specific asset whereas a floating charge is
on the general assets of the company.