Question 48
Business OrganisationsWhich of the following statements is true of a debenture?
- A.Its holders are creditors to the company
- B.It is a type of share with variable rate of dividend
- C.its interest rate increases with profit.
- D.It is available to all business organizations
Show the answer and explanation
Answer: A (Its holders are creditors to the company)
Explanation
A debenture is a loan, so its holders are creditors.