MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Benefits of Debentures

State to whet...

Question

State to whether the following statements are True/False.

The debenture holder is owner of the company.

Open in App

Solution

False

Explanation: Debenture-holders are the creditors of a company. They get interest at a fixed rate, irrespective of whether the company makes profit or not. Unlike shareholders, they are not the owners of the company.

Suggest Corrections

thumbs-up

2

Similar questions

Q. State TRUE and FALSE with reasons.
Debenture holder is the owner of the company.

Q. State to whether the following statements are True/False.

The debentures are known as creditors ship capital of the company.

Q. State True/False with reasons:
Dividend warrants are used to pay interest to the debenture holders.

Q. State whether the following statements are true or false :

Accounting is useful only to the owner.

Q. State to whether the following statements are True/False.

The amount of irredeemable debentures is not paid in the life time of the company.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

What is a Debenture?

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Benefits of Debentures

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon