Question

Select most appropriate alternative from those given below :

The debenture holder is ___________ of the company.
a) debtor
b) creditor
c) owner
d) supplier

Answer 1

The debenture holder is creditor of the company.

Explanation: Debentures are debt funds issued under the common seal of a company. These are issued for a specified period of time with a fixed rate of interest. Debenture-holders are regarded as the creditors of the company, as they have lent the amount to the company as a loan.