CUET Preparation Today
| Debentures represent: |
Director’s Share in a Company Long-term Debt of the Business Investments by Equity Shareholders None of these |
| Long-term Debt of the Business |
| A debenture is thus like a certificate of loan or a loan bond evidencing the company's liability to pay a specified amount with interest. Although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital. |
