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Question
Which of the following statement is true?
Options
A debenture holder is an owner of the company.
A debenture holder can get his money back only on the liquidation of the company.
A debenture issued at a discount can be redeemed at a premium.
A debenture holder receives interest only in the event of profits.
MCQ
Solution
A debenture issued at a discount can be redeemed at a premium.
Explanation:
A debenture holder is a corporation creditor. A debenture holder receives his money returned after a set amount of time, at intervals, or at the company's discretion. Regardless of profit or loss, the holder of a debenture receives interest.
shaalaa.com
Issue of Debentures
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