Which of the Following Is an Advantage of Private Debt

question 91

Multiple Choice

Which of the following is an advantage of private debt over public debt?

• A)It is liquid.
• B)It does not need to be registered with the securities commission.
• C)It does not require interest and principal payments made upon it.
• D)It dilutes the ownership of the firm.
• E)It is sold to a wider group of investors.

---

Definitions:

Possession

The state of having, owning, or controlling something.

Creditor

An individual, organization, or entity to whom money is owed by a debtor.

Lien Legislation

Laws governing the right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Benefits

Advantages or gains received by individuals or groups, often from employment or insurance policies.