Multiple choice general knowledge

Debenture holders of a company are its

  1. Shareholders

  2. Creditors

  3. Debtors

  4. Directors

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debenture holders provide long-term debt financing to a company and receive a fixed rate of return. Hence, they are classified as creditors of the company rather than owners or shareholders.