Q.Debenture capital is a ______ capital of a company.

The correct option is borrowed. A debenture is a loan to the company, so debenture capital is borrowed capital.

When a company issues debentures, it acknowledges a debt and promises to repay the amount with interest after a fixed period. The debenture holder is therefore a creditor of the company, not an owner. Because the money is lent to the company and must be repaid, it is treated as borrowed capital.

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Debenture capital is Borrowed capital. A debenture represents a loan given to the company, so debenture-holders are creditors, not owners.

When a company issues debentures, it borrows money from the public and promises to pay a fixed rate of interest and to repay the principal on maturity. Debenture-holders therefore do not get ownership rights (no voting rights) — they are lenders to the company. The money so raised is a liability the company must repay, which makes it borrowed (loan) capital.

Why the other options are wrong: …