Gepps Cross Industries Issues Debt with a Maturity of 25

question 66

Multiple Choice

Gepps Cross Industries issues debt with a maturity of 25 years. In the case of bankruptcy, holders of this debt may only claim those assets of the firm that are not already pledged as collateral on other debt. Which of the following best describes this type of corporate debt?

• A) an asset-backed bond
• B) unsecured debt
• C) a debenture
• D) a note

---

Definitions:

Poverty Line

The lowest amount of income considered sufficient for a basic standard of living in a specific country, under which an individual is classified as impoverished.

Poverty Rate

The proportion of the population living below the poverty line, indicating the percentage of people whose income is insufficient to meet the basic needs such as food, shelter, and clothing.

Hispanics

An ethno-linguistic group of people traditionally linked to countries that are Spanish-speaking, primarily located in Latin America, but also significantly represented in the United States.

Non-Hispanic Whites

A term used in the United States Census Bureau to refer to White Americans who are not of Hispanic or Latino ancestry.