Which of the Following Accurately Describes a Debenture

question 2

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 ordinary shares.

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Definitions:

Buying Center

A group of individuals within an organization who are involved in the decision-making process for purchasing products or services.

Ford Motor Co.

An American multinational automaker founded by Henry Ford, known for revolutionizing the automobile industry with mass-production techniques and for its iconic vehicles.

Key Personnel

Individuals within an organization who hold critical roles and whose skills and knowledge are essential to its operation and success.

Buying Center

Within an organization, a team of personnel engaged in the process of making decisions to acquire products or services.