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Company finance: Debenture holders are the company’s what? Understand the legal/financial standing of a debenture holder. Choose the correct option.

Q: Company finance: Debenture holders are the company’s what? Understand the legal/financial standing of a debenture holder. Choose the correct option.

Concept Debentures are debt instruments; holders are creditors with a claim for interest and principal, not owners. Final Answer Creditors (lenders to the company)

Difficulty: Easy

Creditors (lenders to the company)
Equity owners
Employees
Trade suppliers

Correct Answer: Creditors (lenders to the company)

Explanation:

Concept

Debentures are debt instruments; holders are creditors with a claim for interest and principal, not owners.

Final Answer
Creditors (lenders to the company)

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