The Financially Independent Firm or Individual That Acts as the Bondholders

question 85

Multiple Choice

The financially independent firm or individual that acts as the bondholders' representative is the

• A) Chairman of the board.
• B) President of the corporation.
• C) Debenture holder.
• D) Indenture holder.
• E) Trustee.

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Definitions:

Massage Numbers

Informal and potentially unethical practices of manipulating financial data to present more favorable results than the actual performance.

Negative Covenant

A clause in a loan or bond agreement that restricts certain activities by the borrower to protect the lender's interests.

Capital Expenditures

Capital expenditures are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.