Question

State the merits of debentures as a source of long term finance.
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Answer 1

Answer:

i)Secured investments-Debentures provide greatest security to the investors.

ii)Fixed return-Debentures guarantee a fixed rate of interest.

iii)Stable prices.

iv)Non-interference in management.

v)Economical.

vi)Availability of funds.

vii)Regular source of income.

Explanation:

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