Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

What is the another name for naked debentures?

Options:

Secured debentures

Mortgaged debentures

Unsecured debentures

None of the above

Correct Answer:

Unsecured debentures

Explanation:

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.