Features of Debentures Questions

Which combination of following statements are Incorrect (False) about debentures-(A) Debenture is a part of owned capital.(B) The payment of interest on debentures is a charge on the profits of the company.(C) The debentures cannot be issued at a discount of more than 10% of the face value.(D) Debentures cannot be converted into shares.(E) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.Choose the correct answer from the options given below:

Select the pair which is true about debentures:(A) Debenture is a part of owned capital.(B) The payment of interest on debentures is a charge on the profits of the company.(C) The debentures cannot be issued at a discount of more than 10% of the face value.(D) Redeemable debentures are those debentures, which are payable on the expiry of the specific period.Choose the correct answer from the options given below:

The following are the features of a Debenture:(A) Debentures can be converted into shares if the terms of issue are so provided, and in that case these are known as convertible debentures.(B) Debentures are generally secured and carry a fixed or floating charge over the assets of the company.(C) The rate of interest on debentures may vary from year to year depending upon the profits of the company.(D) The debentures are issued for a specified period and repayable on the expiry of that period.Choose the correct answer from the options given below: