GCE Economics 1989 Question 38

Question 38

Business Organisations

The reward of a debenture holder of a public company is a fixed rate of

  1. A.interest
  2. B.return
  3. C.dividend
  4. D.rent
  5. E.allowance.
Show the answer and explanation

Answer: A (interest)

Explanation

A debenture is a loan to the company, so its holder earns fixed interest.