Question

“Issue of shares and debentures play a very important role in long term credit.” What are they ? How do they help

Answer 1

Importance of the debentures in your company’s capital structure is really important due to various reasons.  The debentures suppliers and holders of the loan capital does not have controlling interest in a company.

 The financial benefits are available only for the fixed period with reality and hence the firm can adjust all its investment plans by taking into some accounts.