Question

Debentures on which a company does not give any undertaking for the repayment of money borrowed are called:

• A. Bearer Debentures
• B. Secured Debentures
• C. Perpetual Debentures
• D. Registered Debentures

Hint:

Bearer debentures are like cash instruments — whoever holds them can claim interest, but there's no registry in company books.

Answer 1

The Correct Option is A

Bearer debentures are unregistered debt instruments. They are transferable merely by delivery, and the company does not maintain any record of the bearer. Therefore, the company is not directly responsible to the holder for repayment — hence, no undertaking for repayment is issued.
Final Answer: Bearer Debentures