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WAEC Commerce 2018 Objective — Question 14

Question 14 of 50 from the West African Examinations Council (WAEC) Commerce 2018 Objective paper, with the correct answer and a full explanation.

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Which of the following statements is true of a debenture? Its holders

  • A. receive interestCorrect
  • B. form part of a company's authorized capital
  • C. are co-owners of the company
  • D. control the company

Explanation

Debenture holders are creditors (lenders) of the company, and they receive interest on their loan, not dividends or ownership.

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