Question

Irredeemable debentures are also known as ________ debentures.

• A. Periodic
• B. Perpetual
• C. Annual
• D. None of the above

Answer 1

The correct option is B Perpetual

There are two types of debentures which are classified from the point of view of tenure i.e. Redeemable debenture and irredeemable debentures.

Irredeemable debentures are also known as perpetual debentures because the company does not given any undertaking for the repayment of money borrowed by issuing such debentures. These debentures are repayable on the winding-up of a company or on the expiry of a long period.