Which of the Following Statements About Debt Securities Is True

question 10

Multiple Choice

Which of the following statements about debt securities is true?

• A) They can be issued only if the power to do so appears in the articles of incorporation.
• B) They are used to transfer an ownership interest in an organization.
• C) They arise in the form of notes, debentures, or bonds.
• D) They are similar to equity securities in that the terms do not exceed three years.

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Definitions:

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, often in a way that is considered to be unfair.

Physical World

The aspect of the universe that is understood through physical phenomena, including matter and energy, as opposed to the abstract or spiritual realm.

Scientific Revolution

A paradigm shift in which a new scientific theory replaces a problematic paradigm.

Nicolaus Copernicus

A Renaissance mathematician and astronomer who proposed the heliocentric model of the universe, placing the Sun, not the Earth, at the center.