WAEC Economics 2025 Objective — Question 28
Question 28 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.
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Which of the following statements is true of a debenture?
- A. It is a type of share with variable rate of dividend
- B. Its holders are creditors to the companyCorrect
- C. It is available to all business organizations
- D. Its interest rate increases with profit
Explanation
A debenture is a loan to the company, so debenture holders are creditors, not shareholders, of the issuing company.
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