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Answer / h.r. sreepada bhagi
A type of debt instrument that is not secured by physical
asset or collateral. Debentures are backed only by the
general creditworthiness and reputation of the issuer.
In other words a debenture is a document that either creates
a debt or acknowledges it. The term is used in corporate
finance for a medium to long-term debt instrument used by
large companies to borrow money. In some countries the term
is used interchangeably with bond, loan stock, note, etc.
Debentures are generally freely transferable by the
debenture holder. Debenture holders have no voting rights
and the interest paid to them is a charge against profit in
the company's financial statements.
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Answer / naveen agarwal
THE TERM DEBENTURE MEAN IDEBTNESS ISSUSED BY THE COMPANY
GIVING AND UNDERTAKING TO REPAY CERTAIN SUM OF MONEY FOR
CERTAIN PERIOD IN THE MEAN WHILE THE COMPANY HAS TO PAY THE
INTEREST TO THE DEBENTURE HOLDER.THE COMPANY WILL ARAISES
THE CAPITAL OF SHORT-TERM PURPOSE.
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Answer / selvam
unsecured bond: the ability of a customer to obtain goods
or services before payment, based on the trust that payment
will be made in the future
a certificate or voucher acknowledging a debt
|Is This Answer Correct ?||1 Yes||2 No|
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