Question

Which of the following can be classified as a borrowed fund?
a) Equity Shares b) Preference Shares c) Retained earnings d) Debentures

Answer 1

Answer:

d)debentures.........

Answer 2

Answer:

d) Debentures is the correct answer.

Explanation:

There is no explanation for the answer.

Extra Information:

1. Debenture is an instrument which is used in companies to borrow money and it is debt which ranged mid to long term .

2. It has a fixed rate of interest.

3. Debenture is like an evidence which tells that a debt is created or is acknowledged.

4. In some other countries , it is also said as bond, loan stock or note.

5. Debenture holder are called creditors of company by which we can say that Debentures are also called as creditorship securities.