Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Which of the following is a consideration for debenture?
Options:
Share in Profit
Interest
Dividend
None of the above
Correct Answer:
Interest
Explanation:
Debentures are debt instruments issued by companies or entities to raise capital. When individuals or institutions purchase debentures, they are essentially lending money to the issuing company. In return, the company is obligated to pay regular interest to the debenture holders as a form of compensation for the use of their funds. This interest payment is one of the primary considerations for debenture holders.