Question

Explain briefly four characteristics of debentures.

Answer 1

Answer:

1. a debenture is a written acknowledgement of debt taken by the company.

2. debentures are issued in the form of a certificate.

3. debentures are issued under the seal of company.

4. funds raised by the issue of debentures are of long term nature.

5. debenture holders do not have right to vote in the meeting of the company or organisation.