BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which among the statement is not true for a debenture
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Long term loan finance
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Interest on debenture is a tax deductible expense for the company
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Fixed and regular source of income to the investor
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None of these
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Explanation:
Detailed explanation-1: -"Debenture are completely unsafe” this statement is false because debenture holders are lenders for the company. So, company has to repay them after a limited time period.
Detailed explanation-2: -A debenture holder receives interest only in the event of profit.
Detailed explanation-3: -Which of the following is false with respect to debentures? a)They can be issued for cashb)They can be issued as collateral securityc)They can be issued in lieu of dividendsd)NoneCorrect answer is option ‘C’.
Detailed explanation-4: -Expert-Verified Answer. The correct answer is OPTION D: Return Debenture.
There is 1 question to complete.