The holders of debentures receive their payments or bonds yields only after the holders of ___________?
Correct answer: B. secured debt holders
- A. registered debt holders
- B. secured debt holders
- C. unsecured debt holders
- D. unregistered debt holders
Explanation
Debentures are generally unsecured, so their holders rank behind secured creditors, whose collateral gives them priority in repayment. The key distinction is the presence or absence of security over assets.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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