debentures are good from debenture holder point of view but not for bussines.do you agree?explain.

Dear student,

Debentures is a medium to long term debt instrument used by large companies to borrow funds at a fixed interest rate. Debentures represent the loan capital of the company. 
Some of merits of debentures are:
1. The interest on debentures are tax deductible.
2. Debentures do not dilute ownership of company.
3. Debentures are less risky than securities.
4. The interest on debentures do not depends on profit of company.
5. It is suitable for company having stable earning,

Some demerits of debentures are:
1. The companies are legally bound to pay interest on debentures even if in case of no profit or loss.
2. The borrowing capacity of company gets limited with further issue of debentures.

So, we cannot completely say that debentures are good from debenture holder's point of view but not for business, as it offers many benefits to company as well.

Regards

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