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Streeter & Sons is a regional service company that has been in business for a few years, but has not employed a controller or anyone else full-time to keep track of its financial state. The company needs to take a good look at its financial state to determine whether it needs to make any changes in its practices, in order to prevent possible financial meltdown. Which of the following, if true, would strengthen the case that Streeter & Sons will be able to meet its current financial obligations?
General Claim
A broad assertion or demand for rights, money, or property without specificity or restriction.
Collateral Bond
A type of bond that is secured by a specific pledge of collateral.
Debenture
An unsecured bond that relies on the creditworthiness and reputation of the issuer, without collateral.
Face Value
The nominal or dollar value printed on a financial instrument like a bond or stock certificate, representing the amount to be repaid at maturity.
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