When a Company Issues a Long-Term Debt Instrument with No

question 52

Multiple Choice

When a company issues a long-term debt instrument with no security attached it is selling _____ to investors.

• A) shares
• B) debentures
• C) unsecured notes
• D) term loans

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Definitions:

Student Loan Interest

Interest that accrues on money borrowed to fund education, which can sometimes be tax-deductible.

Deduction Limit

Maximum amount that can be deducted from taxable income for certain expenses or contributions, as specified by tax laws.

Itemized Deduction

Itemized deductions are specific expenses allowed by the IRS that can be deducted from taxable income to reduce the amount of tax owed.

Moving Expenses

Costs incurred for relocating, which in certain situations, may be deductible for tax purposes.