Question

Match List-I with List-II

List-I	List-II
(A) Debentures issued for consideration other than cash	(I) A company issues debentures at a price lower than their face value.
(B) Debentures issued as Collateral Security	(II) A company purchases assets from vendors and make payment by debentures
(C) Debentures issued for cash	(III) The company may issue its own debentures to the lenders in addition to some other assets already pledged
(D) Debentures issued at discount	(IV) A company invite the public to apply for debentures by issue of prospectus

Choose the correct answer from the options given below:

• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (IV), (B) - (II), (C) - (III), (D) - (I)
• (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
• (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

Hint:

Match by meaning: non-cash means assets bought, collateral means extra security, cash means prospectus, discount means below face value.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Debentures can be issued in different ways depending on what the company receives and on what terms. We match each type in List-I with its meaning in List-II.

Step 2: Match (A).:
Debentures issued for consideration other than cash are given to sellers in place of payment for assets. The company buys assets from vendors and pays by debentures. So (A) matches (II).

Step 3: Match (B).:
Collateral security means an additional security. The company gives its own debentures to the lender in addition to assets already pledged. So (B) matches (III).

Step 4: Match (C).:
Debentures issued for cash are offered to the public for money. The company invites applications by issuing a prospectus. So (C) matches (IV).

Step 5: Match (D).:
Debentures issued at discount are issued at a price lower than face value. So (D) matches (I).

Step 6: Compare with the options.:
The full match is A-II, B-III, C-IV, D-I. Option (1) gives A-I, which is wrong. Option (2) gives A-IV, which is wrong. Option (4) gives A-III, which is wrong. Option (3) is the same as our match.

Final Answer:
The correct match is A-II, B-III, C-IV, D-I, option (3). \[ \boxed{3} \]