BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debt includes ____
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Equity shares
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Debentures
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Retained earnings
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Reserves
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Explanation:
Detailed explanation-1: -A debenture is a type of long-term business debt not secured by any collateral. It is a funding option for companies with solid finances that want to avoid issuing shares and diluting their equity.
Detailed explanation-2: -Bonds are debt financial instruments issued by financial institutions, big corporations, and government agencies having the backing of collaterals and physical assets. Debentures are debt financial instruments issued by private companies but are not backed by any collaterals or physical assets. Owner.
Detailed explanation-3: -Debenture holders are creditors.
Detailed explanation-4: -Examples of debentures are Treasury bonds and Treasury bills.
There is 1 question to complete.