Vidyalelo
Commerce · Q116

Business and Commerce

Graduate and Post Graduate · Commerce · question 116

Q116

Unsecured debentures are also called as _________.

A.
Mortgaged debentures
B.
Simple debentures
Answer
C.
Bearer debentures
D.
Registered debentures

Answer: Option B

Solution

Answer: Option B
Solution:
Unsecured debentures are debentures that are not supported by a collateral security. No specific assets will be set aside against unsecured debentures. It is basically a loan with out any protection. They are backed only by the general credit worthiness of the issuer.