Which of the Following Is Not True

question 70

Multiple Choice

Which of the following is not true?

• A) Debenture bonds are secured liabilities
• B) Debenture bonds are issued based upon the credit rating of the company
• C) Your company must have a long history of cash flows to issue debenture bonds.
• D) Must have strong positive cash flows to issue debenture bonds.

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Definitions:

SEC Investigators

Personnel from the Securities and Exchange Commission (SEC) responsible for examining and enforcing compliance with securities laws.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Presidential Profits

Earnings or financial gains made by a person holding the office of the president, potentially from various sources, including investments, salaries, or other income.

Public Announcement

An official notification or disclosure made to the general public, often regarding significant changes, decisions, or events related to a company or organization.