Which of the Following Statements About Debt Securities Is True

question 10

Multiple Choice

Which of the following statements about debt securities is true?

• A) They can be issued only if the power to do so appears in the articles of incorporation.
• B) They are used to transfer an ownership interest in an organization.
• C) They arise in the form of notes, debentures, or bonds.
• D) They are similar to equity securities in that the terms do not exceed three years.

---

Definitions:

Remitting Profits

The process of sending back earnings to a company's home country or investors.

Long-Run Exposure

The risk faced by investors or companies that emerge from long-term financial decisions or market conditions.

Strengthening Economies

Refers to economies that are experiencing growth in GDP, employment rates, and trade, indicating an overall improvement in financial health.

Long-Run Exposure

The potential impact on a company's financial health over an extended period due to risks associated with changes in exchange rates, interest rates, or market conditions.