Correct Option
Debenture holders are classified as creditors of a company. A debenture is a debt instrument through which a company borrows funds for a specified period, typically at a fixed interest rate. Debenture holders lend money to the company and, in return, are entitled to receive periodic interest payments and the repayment of the principal amount upon maturity. They do not hold ownership rights or voting power in the company, distinguishing them from shareholders.
Incorrect Options
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Option (a) shareholders: Shareholders are the owners of the company. They invest in the company's equity and possess ownership rights, including potential voting rights and a claim on residual profits, rather than being lenders.
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Option (c) debtors: Debtors are individuals or entities who owe money to the company, usually as a result of credit extended by the company for goods, services, or loans. They are not the ones who provide funds to the company.
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Option (d) directors: Directors are individuals elected or appointed to the board to manage and oversee the company's operations and strategic decision-making. Debenture holders, as creditors, do not participate in the management or governance of the company.