Question

1. Which of the following is not true of a debenture?

a. Debenture holders get a fixed rate of return b. All businesses can have debenture holders
c. They must be repaid on an agreed date
d. Debenture holders are creditors of the company​

Answer 1

B.

Step-by-step explanation:

A debenture can only be taken on a limited company or limited liability partnership; it can't to be taken over a sole trader or standard partnership. A director who has advanced or lent money into their own company could take a debenture to secure the loan. A private lender can also take a debenture.