Which debenture?

Exercise and reference answers

Questions

1. Question

   Repaid only when the company winds up

   Choices

   1. Irredeemable
   2. Redeemable
   3. Convertible

   Correct choice

   Irredeemable

2. Question

   Carries a floating charge on assets

   Choices

   1. Unsecured
   2. Secured
   3. Perpetual

   Correct choice

   Secured

3. Question

   Can be exchanged for shares later

   Choices

   1. Secured
   2. Redeemable
   3. Convertible

   Correct choice

   Convertible

4. Question

   Has no specific charge on assets

   Choices

   1. Unsecured
   2. Secured
   3. Redeemable

   Correct choice

   Unsecured

Instructions

Tap the kind of debenture described.

Explanation