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Question

____________ is a document prepared by the company before the issue of prospectus to the public for subscription of debentures.

A
Debenture
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B
Trust deed
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C
Abridged prospectus
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D
Call letter
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Solution

The correct option is B Trust deed
The debenture is represented by a document which is signed by the authorized person of the company acknowledging the money lent to the company. This is called trust deed.

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