The legal contract which states the legal rights of seller and buyer is classified as ___________?
Correct answer: D. bond indenture
- A. long term indenture
- B. federal indenture
- C. private indenture
- D. bond indenture
Explanation
A bond indenture is the formal legal agreement defining the rights and obligations of the issuer and bondholders. The other indenture labels describe possible terms or classifications, not the standard contract name.
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 Eurobonds are traded in _____________?
The call premium of bond is $560 and the call price of bond is $340 then face value of the bond is _________?
In firm commitment underwriting procedure, the more risk is at the side of ___________?
The bonds used in purpose of specific projects which are financed by the collateral for issuing bonds are classified as ___________?
The municipal bonds are more considerable to ___________?
Besides the equity related bonds, the type of Eurobonds that are convertible are classified as ____________?