Concept:A debenture represents borrowed funds, not ownership in a company.
Explanation:A debenture is a formal certificate that a company issues when it borrows money from the public or financial institutions.
It is a liability for the company because the amount must be repaid after a fixed period.
Debenture holders receive fixed interest and are treated as creditors, not as owners or shareholders.
Since the money is borrowed rather than contributed by owners, debentures are classified as loan capital.
This distinguishes them from share capital, accrued expenses, or a gift.
Answer:A. a loan capital raised by a company