Debenture holders of a company are its:
✓ Correct answer: b) creditors
ExplanationDebenture holders are creditors of a company as they lend money to the company in exchange for a fixed interest rate over a specified period.Unlike shareholders, they do not hold ownership rights but receive priority during liquidation over eq- uity holders.Debentures are issued to raise long-term capital and are generally backed by the company’s assets or revenue-gener- ating ability.Unlike equity shareholders, debenture holders do not have voting rights in company decisions.317
Practice more Economy PYQs
Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.
📈 Economy PYQs →