Vidyalelo
Commerce · Q241

Business and Commerce

Graduate and Post Graduate · Commerce · question 241

Q241

__________ Debentures are not redeemable during life time of the company.

A.
Redeemable
B.
Irredeemable
Answer
C.
Convertible
D.
Non-convertible

Answer: Option B

Solution

Answer: Option B
Solution:
Irredeemable Debentures are not redeemable during life time of the company. Non Redeemable Debentures is a reference to a type of debentures that will continue to remain alive in perpetuity. For this reason, such debentures are also called 'perpetual' or 'Irredeemable' debentures. The issuing company does not have any liability to redeem such debentures as long as it is a going concern.