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Creditors of company are known as: -
(a) Shareholders
Debenture holder.
(c Debtors
(d) Purchaser
(b)
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Answer:
(b) Debenture holder
Explanation:
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A person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. A shareholder subscribes to the shares of a company. Shares are the parts of share capital. On the other hand, debenture-holders are the subscribers to debentures. Debentures are part of loan. A shareholder or member is the joint owner of a company; but a debenture holder is only a creditor of the company. Shareholders are invited to attend the annual general meeting of the company. Debenture holders are not invited, unless any decision affecting their interest is taken. Shareholders control the affairs of the company.
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