Debenture is known as creditorship securities. State the reason:

Question

KollegeApply · Accepted Answer

Debentures represent borrowed funds. Explanation: Debentures are instruments by which a company borrows money; they create a creditor-debtor relationship, requiring fixed interest payments and repayment of principal. Debenture holders are creditors, not owners, and generally lack voting rights.

AChoose Your Answer