Which of the Following Is NOT a Feature of a Debt

question 26

Multiple Choice

Which of the following is NOT a feature of a debt instrument?

• A) A contractual claim against the borrower
• B) Periodic interest payments
• C) Higher claim on assets of borrower than equity holders
• D) Their prices do not fluctuate as much as shares

---

Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts, such as those involving real estate or lasting over a year, to be in writing to be enforceable.

Separately Negotiated

Terms, conditions, or agreements that have been individually discussed and agreed upon by the parties involved, rather than applied universally or as part of a standard procedure.

Pre-Printed Terms

Standardized, boilerplate language in a contract, typically not negotiated between parties and often found in form contracts.

E-Sign

The use of electronic signatures to sign documents and agreements, legally recognized as equivalent to handwritten signatures under certain jurisdictions and laws.