passwella.
Menu

GCE Commerce 1989 Question 85

Question 85

Business Finance

Which of the following is true of debenture?

  1. A.They are part of the company's authorized capital
  2. B.Debenture holders receive interest
  3. C.Debenture holders receive dividend
  4. D.Debenture holders are owners of the company
  5. E.Debenture holders control the company.
Show the answer and explanation

Answer: B (Debenture holders receive interest)

Explanation

Debenture holders are creditors who lend the company money and receive fixed interest, whether or not there is profit.