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WAEC Commerce 2014 Question 18

Question 18

Business Finance

Debentures which are secured by the fixed assets of a company are called

  1. A.Mortgaged Debentures.
  2. B.Naked Debentures.
  3. C.Redeemable Debentures.
  4. D.Irredeemable Debentures.
Show the answer and explanation

Answer: A (Mortgaged Debentures.)

Explanation

Debentures secured on the company's fixed assets are mortgage debentures; naked debentures have no security.