[amp_mcq option1=”They enjoy a high order of priority in the event of liquidation” option2=”Stable rate of return” option3=”No risk” option4=”All of the above” correct=”option1″]<\/p>\n
The correct answer is: A. They enjoy a high order of priority in the event of liquidation<\/strong><\/p>\n Debentures are a type of loan that a company issues to investors. In return for lending the company money, investors receive a fixed rate of interest, which is paid out on a regular basis. Debentures are considered to be a relatively safe investment, as they have a high order of priority in the event of liquidation. This means that if the company goes bankrupt, debenture holders will be paid out before any other creditors.<\/p>\n B. Stable rate of return is not always true for debentures. The interest rate on a debenture is usually fixed, but it can be variable depending on the terms of the loan. If interest rates go up, the interest rate on the debenture will also go up, and vice versa. This means that the rate of return on a debenture can be volatile.<\/p>\n C. No risk is also not always true for debentures. While debentures are considered to be a relatively safe investment, there is still some risk involved. If the company defaults on its loan, the debenture holders may not get their money back.<\/p>\n Therefore, the correct answer is A.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”They enjoy a high order of priority in the event of liquidation” option2=”Stable rate of return” option3=”No risk” option4=”All of the above” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-57855","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n