Correct Answer: Both (a) and (b)

Solution : If a Company gets liquidated then the debenture holder gets priority as compared to other Shareholder. Shareholders are entitled to receive dividends, which is a share in the profits of the company. Since they have lent money to the company, debenture holders are entitled to receive interest. Despite generating profits, a company may choose not to pay dividends to its shareholders.

Hence the correct answer is Option 3