Which of the following is NOT true of deben..

Question 1 Report

Which of the following is NOT true of debentures and debenture holders?

Debentures are instruments for rising long-term capital by limited liability companies

Debenture are fixed interest-bearing securities with specified maturity dates

Debentures holders are creditors to the company and therefore do not share in the risk of the company

Debenture holders are entitled to interest payments whether or not profits are made

Preference shareholders recieve their share of profits before debenture holders receive their entitlements