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    Question

    A company has issued non-convertible debentures. Which

    of the following is true?
    A They are a part of shareholders’ funds Correct Answer Incorrect Answer
    B They represent long-term borrowings and require interest payments Correct Answer Incorrect Answer
    C Debenture holders get voting rights like equity shareholders Correct Answer Incorrect Answer
    D They are always unsecured Correct Answer Incorrect Answer
    E They are an expense in P&L Correct Answer Incorrect Answer

    Solution

    Non-convertible debentures are debt instruments requiring interest.

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