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Question
Debenture capital is a ______ capital of a company.
Options
Borrowed
Owned
Permanent
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Solution
Debenture capital is a borrowed capital of a company.
Explanation:
The capital of a company is raised by issuing shares or debentures to the public. The share capital is the owned capital, while Debenture Capital is the borrowed capital of a company. Debenture is an acknowledgement of a debt. Debenture holder is a creditor of the company.
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