Which of the Following Is Best Categorized as a Hybrid

question 12

Multiple Choice

Which of the following is best categorized as a hybrid claim against a company as opposed to a debt equivalent?

• A)Employee stock options.
• B)Securitized receivables.
• C)Unfunded pension liabilities.
• D)Long-term operating provisions.

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Definitions:

Ambiguous

Open to more than one interpretation; not having one obvious meaning.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument for the purpose of transferring ownership or authorizing its use by someone else.

Payable to Order

A financial term indicating that a payment should be made to a specific individual or entity whose name appears on the document.

Drawer

In banking and finance, the person who writes or issues a check or draft, instructing the bank to pay a specified amount to the person or entity named.