Answer to Question #229523 in Economics for Millicent

Question

Identify the correct definition of unsecured debenture.

Select one:

a. Debenture secured by either movable or immovable assets. The debenture holder has the right to claim repayment from the proceeds of the sale of assets.

b. Debentures may be redeemed prior to the maturing date.

c. Debentures that are not secured by any asset. The debentures holders have the same rights as any other creditor on the case of liquidation.

d. Debenture holders have the option to convert their debenture into specific shares after a specified period.

Answer 1

c. Debentures that are not secured by any asset. The debentures holders have the same rights as any other creditor on the case of liquidation.