A Company That Issues Debt Securities Paying a Fixed Return

question 125

Multiple Choice

A company that issues debt securities paying a fixed return would be defined by the Investment Company Act as a(n) :

• A) face-amount certificate company
• B) unit investment trust
• C) management company
• D) "no load" company
• E) none of the other specific choices are correct

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Definitions:

Operating Activities

Activities that relate to the primary operations of a company, such as selling products or services and administrative expenses.

Taxes

Compulsory charges imposed by governments on individuals or entities to fund public services and infrastructure.

Investing Activity

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement that indicates how funds are used and generated.

Corporation

Business organization that is both a legal and accounting entity.