Debenture holders are _________ of the company.

Owners

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Creditors

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Debtors

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None of these

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Solution

The correct option is B Creditors
Business can take the amount from outsiders in two ways i.e. Equity and Debt. Debenture is as good as debt of the company which carries a certain percentage of interest. Such amount is payable to the debenture holders and therefore, debenture holders are considered as creditors of the company and having a preference to the shareholders.

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