Question

Explain the limitations of issuing Debentures ?​

Answer 1

Answer:

Each company has certain borrowing capacity. ... With redeemable debenture, the company has to make provisions for repayment on the specified date, even during periods of financial strain on the company. Debenture put a permanent burden on the earnings of a company

Answer 2

Answer:

Disadvantages of Debentures

Each company has certain borrowing capacity.

With redeemable debenture, the company has to make provisions for repayment on the specified date, even during periods of financial strain on the company. Debenture put a permanent burden on the earnings of a company.

Hope this helps you.