Which of the Following Accurately Describes a Debenture

question 138

Multiple Choice

Which of the following accurately describes a debenture?

• A)A legal contract between the bond issuer and the bondholders.
• B)A type of bond issued in the names and addresses of the bondholders.
• C)A type of bond which requires the bond issuer to create a sinking fund of assets set aside at specified amounts and dates to repay the bonds.
• D)A type of bond which is not collateralized but backed only by the issuer's general credit standing.
• E)A type of bond that can be exchanged for a fixed number of shares of the issuing corporation's common stock.

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Definitions:

Partnership

A legal arrangement in which two or more individuals share ownership of a business, including its profits, liabilities, and operational responsibilities.

Legal Work

Any work involving the practice of law, including litigation, legal advice, and documentation.

Consent

Voluntary agreement and acceptance by a person to undergo a particular activity or process, understanding and agreeing to its implications and consequences.

Partnership Act

Legislation that governs the rights, responsibilities, and conduct of business partnerships.