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Debentures constitute a part of owned funds. - Commercial Studies

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Question

Debentures constitute a part of owned funds.

Options

  • True

  • False

MCQ
True or False

Solution

This statement is False.

Explanation:

Debentures are a part of borrowed funds, not owned funds. Debenture holders are creditors of the company, and the company is obligated to repay the borrowed amount with interest, unlike shareholders who own part of the company.

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Debentures/Bonds
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Chapter 10: Sources of Finance - EXERCISES [Page 171]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 10 Sources of Finance
EXERCISES | Q (d) | Page 171
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