Which of the following is NOT true of debentures and debenture holders?

A Debentures are instruments for rising long-term capital by limited liability companies
B Debenture are fixed interest-bearing securities with specified maturity dates
C Debentures holders are creditors to the company and therefore do not share in the risk of the company
D Debenture holders are entitled to interest payments whether or not profits are made
E Preference shareholders recieve their share of profits before debenture holders receive their entitlements

Correct Answer: Option E

Explanation:

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