With the issue of debentures, the capacity of a company to further borrow funds reduces. Options: A . &nbsp True B . &nbsp False C . &nbsp Trade Credit D . &nbsp Debentures

With the issue of debentures, the capacity of a company to further borrow fund

Question -

With the issue of debentures, the capacity of a company to further borrow funds reduces.

Options:

A . True

B . False

C . Trade Credit

D . Debentures

Answer: Option A
:
A

True. Each company has certain borrowing capacity. With the issue of debentures, the capacity of a company to further borrow funds reduces.

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