Multiple Choice Questions on Consider the following statements about a debenture in Corporate Finance 1 It is a de........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

Consider the following statements about a debenture in Corporate Finance 1 It is a de...........

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4th option may be wrong as debenture is a part of loan of the company not capital of the company

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A debenture is a financial instrument that is used by a lender, such as a bank, to provide capital to businesses and individuals. It allows the lender to secure loan repayments against the borrower's assets – even if the borrower fails to make the payment. Although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital.

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