[amp_mcq option1=”are the owners of the company” option2=”have the right to vote” option3=”have the right to dividend” option4=”are the creditors of the company” correct=”option4″]<\/p>\n
The correct answer is: Debenture holders are the creditors of the company.<\/p>\n
A debenture is a loan that a company takes out from an investor. The investor, or debenture holder, is lending money to the company and expects to be paid back with interest. Debenture holders do not have any ownership rights in the company, and they do not have the right to vote on company matters. However, they do have the right to be paid back their loan, plus interest, before any other creditors are paid.<\/p>\n
Option A is incorrect because debenture holders are not the owners of the company. The owners of the company are the shareholders.<\/p>\n
Option B is incorrect because debenture holders do not have the right to vote on company matters. Only shareholders have the right to vote.<\/p>\n
Option C is incorrect because debenture holders do not have the right to dividend. Only shareholders are entitled to dividends.<\/p>\n
I hope this explanation is helpful. Please let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”are the owners of the company” option2=”have the right to vote” option3=”have the right to dividend” option4=”are the creditors of the company” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-49976","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n