Found this Qs in Kaplan Kit
In relation to a debenture, which of the following is NOT true?
-It may be issued at a discount
-interest on it may be paid from capital
-it is paid after preference shares
-it is freely transferable
D is the solution which is not making any sense. Because from what I know, debentures are transferrable. Also please explain option B. Option C is clearly wrong too.
Options 1 and 4 are true
Options 2 and 3 are not true
Just make sure that you have correctly transcribed the question … if option 3 were to read “it is paid after preferential CREDITORS” then that too would be true and the only incorrect option would then be option 2 (interest paid from capital)
You must be logged in to reply to this topic.