Which of the Following Statements with Regards to Debentures Is

question 13

Multiple Choice

Which of the following statements with regards to debentures is false?

• A)Most debenture issues involve a fixed charge because a floating charge impedes the company's freedom to deal in its own assets.
• B)Debenture holders rank as unsecured creditors on the portion of the financial obligations,on a fixed-charge debenture,that is not raised through the sale of the pledged assets.
• C)The interest rates attached to a debenture issue normally remain unchanged for the life of the issue.
• D)None of the given options.

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Definitions:

Lumbar Plexus

A network of nerve fibers in the lumbar region of the body, providing sensation and movement.

Cervical Plexus

A network of nerves in the neck that supplies movement and sensation to the neck, upper shoulders, and part of the arms.

Patellar Reflex

A reflex action in which the patellar tendon is tapped, causing the quadriceps muscle to contract and kick the lower leg forward.

Rectus Femoris Muscle

A muscle of the anterior thigh that is part of the quadriceps group, involved in knee extension and hip flexion.