Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is a debenture as per the Companies Act, 2013?
What is a debenture as per the Companies Act, 2013?
- A type of long-term borrowing instrument issued by a company (correct)
- A type of government-issued security
- A type of equity instrument issued by a company
- A type of short-term borrowing instrument issued by a company
What is the nature of debenture holders' claim on the company's assets?
What is the nature of debenture holders' claim on the company's assets?
- They have a claim on the company's assets (correct)
- They have voting rights in the company
- They have no claim on the company's assets
- They have ownership rights in the company
What does a company promise to debenture holders?
What does a company promise to debenture holders?
- To pay back a specific amount of money at a fixed interest rate with no predetermined date
- To pay back a specific amount of money at a variable interest rate with no predetermined date
- To pay back a specific amount of money at a fixed interest rate on a predetermined date (correct)
- To pay back an unspecified amount of money at a variable interest rate on a predetermined date
