The bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as ____________?
Correct answer: D. debentures
- A. untimed indentures
- B. untimed debentures
- C. indentures
- D. debentures
Explanation
Debentures are generally unsecured bonds backed by the issuer's creditworthiness rather than specific collateral. An indenture is the legal contract governing a bond issue, not the bond type itself.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The interest rate on Eurobonds are paid ______________?
The foreign bonds issued in United States financial institutions are classified as ____________?
The thin trading of municipal bonds in secondary markets is because of ___________?
When characteristics of bonds are perceived as unfavorable or favorable to the holders of the bond, then differences of yield spread
The foreign bonds issued in United Kingdom financial institutions are classified as ____________?
The type of bonds in which whole issues get mature on a single date is considered as ___________?