state the following statements are True or False:
An individual can become a part of the company if the individual purchases the companies debt.

True

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False

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Solution

The correct option is B False
An individual can become a part of the company if the individual purchases the companies debt- this is a false statement as debt is known as borrowed fund of the company and the person who purchases companies debt are known as the borrowers.

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

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