In Order to Determine If, in Substance, a Complex Financial

question 45

Multiple Choice

In order to determine if, in substance, a complex financial instrument is equity, the answer should be no to all of the following except:

• A)Is the periodic return on capital obligatory?
• B)Is the debtor legally obligated to repay the principal at the option of the creditor?
• C)Is the amount convertible into common shares?
• D)Is the debtor legally obligated to repay the principal at a fixed rate?

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Definitions:

Branching Mechanisms

The feature in programming and version control systems that allows for the divergence from the main line of development, to experiment or to work on different tasks simultaneously.

Break Statements

Instructions in programming that cause the immediate termination of a loop, switch, or labeled block.

Switch Statement

A switch statement is a control flow statement that allows a variable to be tested against a list of values, each with its own code block to execute.

Syntax Error

A mistake in the code that causes the program to fail to compile or run correctly.