Answer briefly the following question:
State two reasons for a company to purchase its own debentures from the open market.

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Solution

The company can purchase its own debentures only it is authorised by its Article of Association.
Following are the reasons for which company purchase its own debentures from the open market:
1. To save interest payable on debentures to debenture holders.
2. For the purpose of immediate cancellation.

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Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Purchase of a second hand machine from a domestic firm.
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Answer briefly the following question:State two reasons for a company to purchase its own debentures from the open market.

The company can purchase its own debentures only it is authorised by its Article of Association.Following are the reasons for which company purchase its own debentures from the open market:1. To save interest payable on debentures to debenture holders.2. For the purpose of immediate cancellation.

Answer briefly the following question:
State two reasons for a company to purchase its own debentures from the open market.