Question

Debenture holders of a company are the company's _______

• A. Creditors
• B. Customers
• C. Owners
• D. Strangers

Hint:

Debenture holders are distinct from shareholders because they do not own the company but have a fixed interest claim.

Answer 1

The Correct Option is A

Debenture holders are considered creditors of the company, as they lend money to the company in exchange for interest. They have a claim on the company's assets.