Which of the Following Statements Is FALSE

question 87

Multiple Choice

Which of the following statements is FALSE?

• A) The registered bond system facilitates tax collection because the government can easily keep track of all interest payments made.
• B) Asset-backed bonds and mortgage bonds are secured debt, and specific assets are pledged as collateral that bondholders have a direct claim to in the event of bankruptcy.
• C) Notes typically have longer maturities (more than ten years) than debentures.
• D) Although the word "bond" is commonly used to mean any kind of debt security, technically a corporate bond must be secured.

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Definitions:

Technological Opportunities

The possibilities for technological innovation and development, often leading to new products, services, or processes.

Industry's Concentration

An indicator of how much a few companies control the overall output, sales, or market share within a sector.

Creative Destruction

The process through which new innovations lead to the demise of older technologies or industries, driving economic growth through continuous evolution.

Dominant Firms

Companies that hold a major portion of market share in their industry, influencing market conditions.