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
Correct Answer: Option E
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