Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

The owners of the debenture are generally qualified/eligible for which of the following?

Options:

Fixed-rate interest

Company's voting rights

Firm's profit share

Fixed dividend

Correct Answer:

Fixed-rate interest

Explanation:

Debenture holders receive fixed interest payments at predetermined intervals from the issuing company. This interest rate is specified in the debenture terms and remains constant throughout the tenure of the debenture.