In general, Debentures indicate which of the following? |
Short-term Borrowings of a Company The Investment of Preference Shareholders The Investment of Equity Shareholders Long-term Borrowings of a Company |
Long-term Borrowings of a Company |
The correct answer is option 4- Long-term Borrowings of a Company. Debentures indicate Long-term Borrowings of a Company. Debentures are a form of long-term debt instrument issued by a company to raise capital. They typically involve the company borrowing money from investors and agreeing to pay them interest over a set period, with the repayment at maturity. Long term borrowings are the types of loan that will be repayable after 12 months. |