There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.
Assertion (A): The issue of debenture does not result in the dilution of interest of equity shareholders.
Reason (R): Debenture holders have voting rights.
Answer & explanation
Correct answer: option 4
Issue of debenture does not result in dilution of interest of equity shareholders as they do not have right either to vote or to take part in the management of the company.