Which of the following is NOT true of debentures and debenture holders?

a

Debentures are instruments for rising long-term capital by limited liability companies

b

Debenture are fixed interest-bearing securities with specified maturity dates

c

Debentures holders are creditors to the company and therefore do not share in the risk of the company

d

Debenture holders are entitled to interest payments whether or not profits are made

e

Preference shareholders recieve their share of profits before debenture holders receive their entitlements

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Correct Option
e

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Deepthinker581
4 years ago

Preference shareholders receive their profit before the normal shareholders
So "E" is correct

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