Which of the Following Is Not One of the Advantages

question 29

Multiple Choice

Which of the following is not one of the advantages that were previously available when the insubstance defeasance of debt was allowable?

• A) It provided a tool to 'manage' company earnings.
• B) Restrictive limitations imposed by the trustee for debenture holders can be relaxed by reducing the amount of debt.
• C) It allowed debt to be retired with reference to specific individual debt-holders.
• D) It allowed strategic rethinking of business policies.
• E) The effect of forcing up the market price of desired securities, when a company attempts to buy back debt, can be reduced.

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Definitions:

Reasonable Price

A price that is considered fair and appropriate for the goods or services offered, taking into account various factors like market conditions, costs, and value provided.

Sale of Goods

A transaction in which ownership of tangible personal property is transferred from one party to another for a price.

Warranty

A guarantee provided by a seller or manufacturer regarding the condition of its product and the commitment to repair or replace defective parts within a specified period.

Sale of Goods Act

A set of laws regulating the sale of goods, including the rights of buyers and sellers, typically governing aspects such as quality and ownership.