___________ is a document which either creates or acknowledges a debt.

Debenture

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Trust deed

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Security

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Articles of association

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Debenture
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.

Suggest Corrections

Similar questions

A ‘share’ represents ownership of the company whereas a debenture is only acknowledgement of debt. State true or false.

Join BYJU'S Learning Program