- This topic has 3 replies, 2 voices, and was last updated 2 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › debentures
debentures are also a form of long term loan, provided that a collateral asset is provided to the respective finance provider.
is this correct sir?
They are a long term loan. There is often collateral but there certainly doesn’t have to be.
Sir for which type of organizations is debentures suitable
Like what should the environment of the corporate be like in order to enjoy the benefits of debentures
All businesses needing to raise more finance will consider using debt finance – it is irrelevant as to the type of business or the environment of the corporate.
In theory, as I explain in my lectures, all businesses should raise as much debt finance as possible.