passwella.
Menu

JAMB Economics 1993 Question 24

Question 24

Business Organisations

A debenture share entitles its holder to

  1. A.participate in the annual general meeting of the company
  2. B.share in the dividends declared
  3. C.receive a fixed interest on sums invested
  4. D.have a representative on the Board of Directors
Show the answer and explanation

Answer: C (receive a fixed interest on sums invested)

Explanation

A debenture holder lends money to the company and receives a fixed rate of interest; he is not an owner.