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Direction: Choose the correct answer to the following questions from the given alternatives:
Own debentures are those debentures of the company which:
  • a)
    The company allots to its own promoters,
  • b)
    The company allots to its Director,
  • c)
    The company purchases from the market and keeps them as investments.
  • d)
     All of the above
Correct answer is option 'C'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from t...
Explanation:


  • Definition of Own Debentures: Own debentures are those debentures of the company which the company purchases from the market and keeps them as investments. This means that the company buys its own debentures as an investment option.

  • Company Allotment: Own debentures are not allotted to promoters or directors. They are purchased from the market, which distinguishes them from debentures allotted to promoters or directors.

  • Investment Purpose: Companies may choose to invest in their own debentures for various reasons, such as generating additional income through interest payments or holding them as part of their investment portfolio.

  • Legal Considerations: Companies need to ensure that the purchase of their own debentures complies with legal regulations and does not violate any laws related to investments or corporate actions.


By following these guidelines, you can easily understand the concept of own debentures and how companies utilize them as part of their investment strategy.
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Direction: Choose the correct answer to the following questions from the given alternatives:Own debentures are those debentures of the company which:a)The company allots to its own promoters,b)The company allots to its Director,c)The company purchases from the market and keeps them as investments.d)All of the aboveCorrect answer is option 'C'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from the given alternatives:Own debentures are those debentures of the company which:a)The company allots to its own promoters,b)The company allots to its Director,c)The company purchases from the market and keeps them as investments.d)All of the aboveCorrect answer is option 'C'. 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:Own debentures are those debentures of the company which:a)The company allots to its own promoters,b)The company allots to its Director,c)The company purchases from the market and keeps them as investments.d)All of the aboveCorrect answer is option 'C'. 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:Own debentures are those debentures of the company which:a)The company allots to its own promoters,b)The company allots to its Director,c)The company purchases from the market and keeps them as investments.d)All of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Direction: Choose the correct answer to the following questions from the given alternatives:Own debentures are those debentures of the company which:a)The company allots to its own promoters,b)The company allots to its Director,c)The company purchases from the market and keeps them as investments.d)All of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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