Question：What is a debenture?
A. A written acknowledgement of a debt by a company.
B. A company's loan notes which are traded on a recognised exchange.
C. A general term used to describe loan notes issued by a company.
D. A loan secured on a company's assets.
The correct answer is: A written acknowledgement of a debt by a company.
A debenture is a written acknowledgement of a debt by a company, usually given under its seal and containing provisions as to the payment of interest and terms of repayment of the principal.