Typically, debentures have higher interest rates than mortgage bonds primarily because mortgage bonds are backed by assets while debentures are unsecured.?
Answer the following statement true (T) or false (F)
True
A debenture is an unsecured bond; as such, it provides no lien, or claim, against specific property as security for the obligation. With a mortgage bond, the corporation pledges certain tangible (real) assets as security, or collateral, for the bond. See 6-1: Characteristics and Types of Debt
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With regard to preferred stock,
a. its issuance provides no flexibility to the issuing company because its terms always require mandatory dividend payments. b. no dividends are expected by the stockholders. c. its stockholders may have the right to participate, along with common stockholders, if an extra dividend is declared. d. there is a legal requirement for a corporation to declare a dividend on preferred stock.
When auditors examine and test the call-back feature, they are testing which audit objective?
a. incompatible functions have been segregated b. application programs are protected from unauthorized access c. physical security measures are adequate to protect the organization from natural disaster d. illegal access to the system is prevented and detected
The firm's _______, defines the target market segments and customers and a course of action that the firm will pursue to deliver superior value to them
a. technology strategy b. market strategy c. learning strategy d. project strategy
Trey, a full-time college student, sold his car to Don, another student. In the performance of this contract, Trey
a. has a duty of good faith which means honesty in fact and the exercise of good judgment. b. has a duty of good faith which means honesty in fact. c. has a duty of good faith which means honesty in fact and the exercise of reasonable commercial standards of fair dealing. d. does not have a duty of good faith.