Take Class 12 Tuition from the Best Tutors
Affordable fees 1-1 or Group class Flexible Timings Verified Tutors Search in
Asked by Khushboo Last Modified
Answer 
Debenture is debt instrument that a company issues mostly for the purpose of raising long term funds and generally the intent of issuing it carries following benefit & obligations on the part of issuer:
Benefits-
1. It's cost is lesser than the funds borrowed by way of issue of shares i.e. both preference and equity.
2. Dilution of control does not take place as the holder of such instruments have no ownership rights over the company.
Obligation-
1. Interest must be paid on the said instruments as they carry a fixed financial cost to the company irrespective of the fact whether company has made suficient profits during the current or previous financial years.
2. Payment to them is made in priority to the payments made to other stakeholders like Preference shareholders and Equity shareholders.
Hope this will clear the wind and help you on the conceptual points related to theses instruments.
:)
read less
Related Questions
Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRelated Lessons
Recommended Articles
Meet Urmila, an MBBS tutor from Bangalore
Urmila is a passionate teacher with over 8 years of experience in teaching. She is currently pursuing her Ph. D. She provides classes for Class 11, Class 12, MBBS and Medical tuition. Urmila began her career in teaching long before she became a teacher. She used to provide classes for foreign national students in her college...
Read full article >
Meet Sandhya R, a B.Sc tutor from Bangalore
Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...
Read full article >
Meet Mohammad Wazid, a skilled trainer for...
Mohammad Wazid is a certified professional tutor for class 11 students. He has 6 years of teaching experience which he couples with an energetic attitude and a vision of making any subject easy for the students. Over the years he has developed skills with a capability of understanding the requirements of the students. This...
Read full article >
Meet Radhe Shyam Burman, an MBA Tutor from...
Radhe Shyam is a highly skilled accounts and finance trainer with 8 years of experience in teaching. Accounting is challenging for many students and that’s where Radhe Shyam’s expertise comes into play. He helps his students not only in understanding the subject but also advises them on how to overcome the fear of accounts...
Read full article >
Looking for Class 12 Tuition ?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near youThe best tutors for Class 12 Tuition Classes are on UrbanPro
The best Tutors for Class 12 Tuition Classes are on UrbanPro
17
