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Question
Debenture-holders are called as ______.
Options
Employees of the Company
Owner of the Company
Creditors of the Company
None of these
MCQ
Fill in the Blanks
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Solution
Debenture-holders are called creditors of the company.
Explanation:
- Debenture-holders are creditors of a firm since they lend money.
- In exchange, they receive fixed interest at regular periods regardless of corporate profitability.
- They have priority over stockholders in liquidation but no ownership rights.
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Chapter 18: Sources of Business Finance - EXERCISES [Page 267]
