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Question
Multiple Choice Question:
Debentures represent
Options
Fixed capital of the company
Permanent capital of the company
Fluctuating capital of the company
Loan capital of the company
MCQ
Solution
Debentures are financial instruments used by companies to raise their long-term debt capital. Thus, debentures represent the loan capital of a company. Just as in the case of loans, the rate and time of payment of interest on debentures are fixed in advance.
Hence, the correct answer is option Loan capital of the company.
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Debentures
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