What is the another name for naked debentures?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Unsecured debentures.
Unsecured debentures is the another name for naked debentures.
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.