Question

Debentures represent ______.

Options

• Fixed capital of the company.

• Permanent capital of the company.

• Fluctuating capital of the company.

• Debt capital of the company.

Answer 1

Debentures represent debt capital of the company.

Explanation:

Debentures are a company's borrowed funds. Because debenture holders are the company's creditors, they are known as creditorship securities. Debenture capital may, therefore, be called debt capital. A debenture is a document or certificate issued by a company under its seal to acknowledge its debt.