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Question
Select most appropriate alternative from those given below :
The debenture holder is ___________ of the company.
Options
debtor
creditor
owner
supplier
Solution
The debenture holder is creditor of the company.
Explanation: Debentures are debt funds issued under the common seal of a company. These are issued for a specified period of time with a fixed rate of interest. Debenture-holders are regarded as the creditors of the company, as they have lent the amount to the company as a loan.
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