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Which of the following statement is false with respect to debentures?
  • a)
    A company can issue irredeemable debentures
  • b)
    A company can issue debentures for consideration other than cash 
  • c)
    A company can issue debentures with voting rights 
  • d)
    A company can busy its own debentures 
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is false with respect to debentures?a...
Debentures:

Irredeemable Debentures:
- A company can issue irredeemable debentures, which are not required to be repaid by the company.
- Irredeemable debentures are also known as perpetual debentures and do not have a maturity date.

Debentures for Consideration Other than Cash:
- A company can issue debentures for consideration other than cash, such as assets or services.
- This allows companies to raise funds by issuing debentures in exchange for non-monetary assets.

Debentures with Voting Rights:
- This statement is false. A company cannot issue debentures with voting rights.
- Debenture holders are considered creditors of the company and do not have voting rights in the decision-making process of the company.

Buyback of Debentures:
- A company can buy back its own debentures through a process known as debenture redemption.
- This allows the company to reduce its debt and interest payments by repurchasing the debentures issued earlier.
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Which of the following statement is false with respect to debentures?a)A company can issue irredeemable debenturesb)A company can issue debentures for consideration other than cashc)A company can issue debentures with voting rightsd)A company can busy its own debenturesCorrect answer is option 'C'. Can you explain this answer?
Question Description
Which of the following statement is false with respect to debentures?a)A company can issue irredeemable debenturesb)A company can issue debentures for consideration other than cashc)A company can issue debentures with voting rightsd)A company can busy its own debenturesCorrect answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which of the following statement is false with respect to debentures?a)A company can issue irredeemable debenturesb)A company can issue debentures for consideration other than cashc)A company can issue debentures with voting rightsd)A company can busy its own debenturesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statement is false with respect to debentures?a)A company can issue irredeemable debenturesb)A company can issue debentures for consideration other than cashc)A company can issue debentures with voting rightsd)A company can busy its own debenturesCorrect answer is option 'C'. Can you explain this answer?.
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