BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Employees
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Debtors
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Creditors
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Partners
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Detailed explanation-1: -Debenture holders are merely lenders to the company and are considered to be creditors. Shareholders actively participate in the decision making process of the company. Debenture holders cannot participate in the decision making process.
Detailed explanation-2: -Debenture is as good as debt of the company which carries a certain percentage of interest. Such amount is payable to the debenture holders and therefore, debenture holders are considered as creditors of the company and having a preference to the shareholders.
Detailed explanation-3: -Debenture holders are creditors.
Detailed explanation-4: -Debentures are part of loan, so a debenture holder is only a creditor of the company.
Detailed explanation-5: -A debenture holder is an unsecured creditor. Unsecured credit is viewed as a higher risk.