Accounting 0452 · IGCSE · Limited companies

Limited companies — practice question

A limited company obtained finance through a debenture issue. Which statement is correct?

  • AThe debentures are part of the equity of the company.
  • BThe debenture holders cannot vote at the annual general meeting.
  • CThe debenture holders are repaid only if the company is wound up.
  • DThe debenture interest is paid only if the company earns a profit.

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