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Question
Assertion (A): Issue of debenture does not result in dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Options
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
MCQ
Fill in the Blanks
Solution
Assertion (A) is true, but Reason (R) is false.
Explanation:
The issuance of a debenture does not dilute the interest of equity owners because they do not have the right to vote or participate in the company's management.
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Issue of Debentures
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