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Q. |
Debenture holders of a company are its - |
A. | Shareholders |
B. | Creditors |
C. | Debtors |
D. | Directors |
Answer» B. Creditors | |
Explanation: Companies issue debentures instead of shares to extend their business. These debentures are issue to borrow loan from general public; interest is paid on the borrowed money to the debenture holders. So a debenture holder is essentially a creditor who simply gives loan to the company. |
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