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A Debenture Allows a Company to Raise Capital by Borrowing

Question 35

Multiple Choice

A debenture allows a company to raise capital by borrowing money which is secured (guaranteed) by:


A) a personal guarantee by the directors.
B) the creditor's right to sell specific assets,if the debt is unpaid.
C) the creditor's rights to become the legal owner of specific assets if the debt is unpaid.
D) all of the above

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