Examlex
Smithfield Enterprises issues debt with a maturity of 7 years. In the case of bankruptcy, holders of this debt may only claim those assets of the firm that are not already pledged as collateral on other debt. Which of the following best describes this type of corporate debt?
Sovereignty
Sovereignty is the supreme power or authority of a state to govern itself or another state, free from external control.
Constitutionally Divided
A term referring to the separation of powers among the different branches of government as defined by a constitution.
Implied
Something suggested or indicated, though not expressly stated.
Internal Revenue Service
The U.S. government agency responsible for the collection of taxes and enforcement of tax laws.
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