Question
The instrument that evidences an acknowledgment of debt
by a company is called a:Solution
A Debenture is a document that either creates a debt or acknowledges it. In corporate finance, it is a medium- to long-term debt instrument used by companies to borrow money at a fixed rate of interest. While a Bond (E) is similar, in the Indian context, "debenture" is the term commonly used for corporate debt, whereas bonds are often associated with governments and financial institutions.
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