Question

Debenture holders are the:

• A. Customers of the company
• B. Creditors of the company
• C. Owners of the company
• D. None of these

Hint:

Debenture holders = lenders → fixed interest; Shareholders = owners → dividends (profit dependent).

Answer 1

The Correct Option is B

Step 1: Rights of debenture holders.
Debenture holders lend money to the company, and in return they receive fixed interest, irrespective of profits.
Step 2: Ownership vs. Creditorship.
- Shareholders = Owners. - Debenture holders = Creditors.
Step 3: Conclude.
Debenture holders are creditors, not owners or customers.
Final Answer: \[ \boxed{\text{Creditors of the company}} \]