Which of the Following Statements Is FALSE

question 14

Multiple Choice

Which of the following statements is FALSE?

• A)In the event of default,the assets not pledged as collateral for outstanding bonds cannot be used to pay off the holders of subordinated debentures until all more senior debt has been paid off.
• B)Because more than one debenture might be outstanding,the bondholder's priority in claiming assets in the event of default,known as the bond's seniority,is important.
• C)When a firm conducts a subsequent debenture issue that has lower priority than its outstanding debt,the new debt is known as a subordinated debenture.
• D)Most debenture issues contain clauses restricting the company from issuing new debt with equal or lower priority than existing debt.

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Definitions:

Microphone

A device that converts sound into electrical signals, commonly used for recording audio or amplifying sound in various applications.

Keyboard

An input device consisting of a set of individual keys that allows a user to input text, characters, or commands to a computer or electronic device.

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The sequence of operations that a computer system performs from being powered on to starting the operating system.

RAM

Random Access Memory, a form of computer memory that can be accessed randomly, used for storing running programs and data.