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Redemption of Debentures

issued by a c...

Question

_______ issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date.

A

Interest Certificate

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B

Share Certificate

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C

Debenture

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D

Demat Certificate

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Solution

The correct option is B Debenture
Debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date. It is a long term security. Fixed interest is earned by issuing the debentures.

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