CUET Preparation Today
| What is the name of the charge on which secured debentures are issued with a charge on the general assets of the company? |
Fixed charge Floating charge Either option 1 or 2 None of these |
| Floating charge |
| 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. |
