There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Debenture holders are the creditors of the company carrying a fixed rate of interest.
Reason (R):  Debentures are short-term loans taken from the public.

(A) is true, but (R) is false.

Most companies turn to raising long-term funds also through debentures which are issued either through the route of private placement or by offering the same to the public. The finances raised through debentures are also known as long-term debt.