Financing That Matures in One Year or Less and Has

question 59

Multiple Choice

Financing that matures in one year or less and has specific assets pledged as collateral is called

• A) spontaneous financing.
• B) unsecured short-term financing.
• C) secured short-term financing.
• D) none of the above.

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Definitions:

Risk

The possibility of losing some or all of an investment, or the uncertainty surrounding the return on an investment.

Convertible Bonds

Debt securities issued by a corporation that can be converted into a specified number of shares of the issuing company's stock.

Conversion Price

Stating the conversion ratio along with the bond’s par value.

Fixed Number

A specific, unchanging quantity or value, often used in contexts requiring precise, constant measurements or counts.