Question 15 of 85beginner🧠 RememberTrue / False1 mark
Debenture is a part of owned capital.
Correct Answer
False
Exercise: Test your Understanding-I | Q: 1 | (Page 35)
For More Understanding
Explanation
According to the textbook context in Section 2.2 'Distinction between Shares and Debentures', it clearly states that 'A share is a part of the owned capital whereas a debenture is a part of borrowed capital.' A debenture is an acknowledgement of debt, and the finances raised through debentures are known as long-term debt. Therefore, debentures represent borrowed capital, not owned capital.