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Question : Secured debenture is known as 

Option 1: Mortagage debenture

Option 2: Naked debenture

Option 3: Unsecured debenture

Option 4: None of the above


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Mortagage debenture


Solution : A secured debenture places a charge on the company's assets, thereby mortgaging such assets. A charge is placed on the assets of the corporation to support the debenture liability. A charge of this kind may be made on either floating or fixed assets.

Hence the correct answer is option 1.

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