Question

Debentures may be issued by a company for_____.

• A. Cash
• B. Consideration other than cash
• C. As a collateral security
• D. All of the above

Answer 1

Answer: (D)

All of the above

Debentures can be issued for cash as well as non-cash considerations such as collateral security. The company may have purchased assets from some vendors or acquired some other business. Then instead of paying cash, the company may issue debentures to such vendors. Such an issue for debentures can be at par, or for a discount or at a premium.