Answers!
Debenture is a kind of loan taken from public
Interest is payable on it just like it is payable on loan
Suppose a company needs money for business of 500 lacs
He can either approach bank for loan @ 15% FOR 3 YEARS
Also,.he can approach public by issuing debentures @ 13% for Years
Just like loan is to be repaid after fixed number of years,debentures are to be repaid after fixed number of yesrs to public
Note-
Debentures can be issued only by big Public Limited Companies
(and not by proprietorship/partnership or private limited companies)
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Answer the question...
Debenture is a kind of loan taken from public
Interest is payable on it just like it is payable on loan
Suppose a company needs money for business of 500 lacs
He can either approach bank for loan @ 15% FOR 3 YEARS
Also,.he can approach public by issuing debentures @ 13% for Years
Just like loan is to be repaid after fixed number of years,debentures are to be repaid after fixed number of yesrs to public
Note-
Debentures can be issued only by big Public Limited Companies
(and not by proprietorship/partnership or private limited companies)
Comment