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प्रश्न
State with reasons whether the following statement is True or False.
Debenture holders are creditors of the company.
पर्याय
True
False
MCQ
चूक किंवा बरोबर
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उत्तर
This statement is True.
Reason:
Debenture holders are considered creditors of the company because:
- They lend money to the company by purchasing debentures, which are a type of loan instrument.
- A debenture is a debt and not an ownership instrument like shares.
- Debenture holders receive a fixed interest rate (whether the company earns profit or not).
- They have no ownership rights, but they can be repaid with interest per the debenture’s terms.
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