Which of the Following Describes a Debenture

question 9

Multiple Choice

Which of the following describes a debenture?

• A) A bond that repays principal in installments
• B) A bond that gives the bondholder a claim for specific assets if the issuer fails to pay
• C) A bond that matures at one specified time
• D) A bond that is not backed by specific assets

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Definitions:

Review

An evaluation or assessment of something for the purpose of informed decision-making or the consideration of its value, quality, or significance.

Restatements

Authoritative texts that aim to distill, clarify, and occasionally modernize the common law in the United States on various subjects.

American Law Institute

An independent organization in the United States that produces scholarly work to clarify, modernize, and otherwise improve the law.

Common Law

A body of legal principles derived from judicial decisions of courts and similar tribunals, as opposed to statutes or written legislation.