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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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