Question

6.Cash loaned to a company is
called?
​

Answer 1

Cash loaned to a company is called Debentures.

What is a debenture?

• In the field of business studies, a debenture can be described as a bond that is made by industries or companies to get money with a fixed rate of interest.
• A debenture helps a company to grow and invest in long-term activities that would be beneficial to the company.
• A debenture shows that a company is liable to pay debt with a fixed interest.

• Other options, such as reserves, is not correct because a reserve is a specific amount of money that is set aside for a specific purpose. It is not cash that is loaned.

The question is not complete. The complete question is:

Cash loaned to a company is called:

A. Dividends

B. Debentures

C. Shares

D. Reserves