Which entities can issue debentures?

Debentures are a type of debt instrument that can be issued by various entities to raise funds, and the correct answer reflects this broad capability. Corporations and governments have the authority to issue debentures, allowing them to borrow money from investors.

For corporations, debentures can be a way to secure funding for expansion, operational costs, or other business activities without giving away equity. They are typically backed by the creditworthiness of the corporation rather than specific assets.

In the case of governments, issuing debentures allows for financing of public projects, infrastructure development, and other governmental functions. These debentures are typically seen as a safer investment, especially when issued by stable government entities.

The other choices are limited in scope, not accurately representing the spectrum of entities capable of issuing debentures. Hence, the inclusion of both corporations and governments in the correct answer portrays a more comprehensive understanding of how debentures function in the financial market.