[amp_mcq option1=”Mortgaged debentures” option2=”Simple debentures” option3=”Bearer debentures” option4=”Registered debentures” correct=”option1″]
The correct answer is: A. Mortgaged debentures.
Secured debentures are also called mortgaged debentures because they are secured by a mortgage on the company’s assets. This means that if the company defaults on its debt, the debenture holders have a claim on the company’s assets.
Simple debentures are unsecured debentures. This means that they are not secured by any assets. If the company defaults on its debt, the debenture holders have no claim on the company’s assets.
Bearer debentures are debentures that are not registered in the name of the owner. This means that the ownership of the debentures is transferred by physical possession of the debenture certificate.
Registered debentures are debentures that are registered in the name of the owner. This means that the ownership of the debentures is transferred by a change in the register of debenture holders.