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Direction: Choose the correct answer to the following questions from the given alternatives:
Which of the following is not a characteristic of Bearer Debentures?
  • a)
    They are treated as negotiable instruments.
  • b)
    Their transfer requires a deed of transfer.
  • c)
    They are transferable by mere delivery.
  • d)
    The interest on it is paid to the holder irrespective of identity.
Correct answer is option 'B'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from t...


  • Treated as negotiable instruments: Bearer Debentures are treated as negotiable instruments, which means they can be transferred from one person to another by mere delivery.

  • Transfer requires a deed of transfer: This statement is incorrect as bearer debentures are transferable by mere delivery. There is no need for a deed of transfer for their transfer.

  • Interest paid to the holder irrespective of identity: The interest on bearer debentures is paid to the holder irrespective of their identity. This characteristic makes them different from registered debentures where interest is paid to the registered holders.


Therefore, the correct answer is B: Their transfer requires a deed of transfer.
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Direction: Choose the correct answer to the following questions from the given alternatives:Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instruments.b)Their transfer requires a deed of transfer.c)They are transferable by mere delivery.d)The interest on it is paid to the holder irrespective of identity.Correct answer is option 'B'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from the given alternatives:Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instruments.b)Their transfer requires a deed of transfer.c)They are transferable by mere delivery.d)The interest on it is paid to the holder irrespective of identity.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Direction: Choose the correct answer to the following questions from the given alternatives:Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instruments.b)Their transfer requires a deed of transfer.c)They are transferable by mere delivery.d)The interest on it is paid to the holder irrespective of identity.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Choose the correct answer to the following questions from the given alternatives:Which of the following is not a characteristic of Bearer Debentures?a)They are treated as negotiable instruments.b)Their transfer requires a deed of transfer.c)They are transferable by mere delivery.d)The interest on it is paid to the holder irrespective of identity.Correct answer is option 'B'. Can you explain this answer?.
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