False Statement: They can be issued in lieu of dividends

Explanation:
Debentures are long-term debt instruments that companies issue to raise funds from the public or financial institutions. They are essentially a form of borrowing for the issuing company. While debentures have certain characteristics and features, one of the false statements regarding debentures is that they can be issued in lieu of dividends.

Debentures:
Debentures are a common way for companies to raise capital for various purposes, such as funding business expansion, financing projects, or meeting long-term financial obligations. They are usually issued by companies with a good credit rating to attract investors. Debentures are backed by the general creditworthiness of the issuer and do not have any specific collateral attached to them.

True Statements:
Let's now look at the true statements regarding debentures:

a) They can be issued for cash:
Companies can issue debentures to raise funds in the form of cash. Investors who purchase debentures provide the issuing company with cash in exchange for the debenture instrument. This cash infusion helps the company meet its financial requirements.

b) They can be issued as collateral security:
Debentures can also be issued with collateral security. Companies may offer specific assets or properties as collateral to secure the debenture. This provides an additional layer of security for the investors who hold the debentures.

c) They can be issued in lieu of dividends:
This statement is false. Debentures are not issued in lieu of dividends. Dividends are the distribution of profits to shareholders of a company, whereas debentures represent debts owed by the company to the debenture holders. Dividends are typically paid out of the company's profits, while debentures are a form of borrowing that needs to be repaid with interest.

d) None:
This option is incorrect as the statement "C" is false.

In conclusion, debentures can be issued for cash, as collateral security, but not in lieu of dividends. Dividends are not related to debentures as they represent different financial transactions.