Briefly describe the differences between a debenture, a bond, and a note.
What will be an ideal response?
A debenture is a long-term (often 30 years or more), unsecured debt instrument that is based on a corporation's general credit standing. If the corporation encounters financial difficulty, unsecured debenture holders are treated as general creditors of the corporation (i.e., they are paid only after the secured creditors' claims are paid).
A bond is a long-term debt security that is secured by some form of collateral (e.g., real estate, personal property). Thus, bonds are the same as debentures except that they are secured. Secured bondholders can foreclose on the collateral in the event of nonpayment of interest, principal, or other specified events.
A note is a short-term debt security with a maturity of five years or less. Notes can be either unsecured or secured. They usually do not contain a conversion feature. They are sometimes made redeemable.
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A. Wheeler-Lea Act B. Magnuson-Moss Act C. Robinson-Patman Act D. Federal Trade Commission Act E. Sherman Act
All of the following are negatives of cloud computing except ________.
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What is the JIT inventory management? What types of costs are minimized with JIT control? In order to use JIT, is it better to have high ordering costs or low?
Why? Do you think companies that use JIT inventory control tend to have high or low carrying costs? Why? What will be an ideal response?
Which of the following best describes the term "recognizance"?
A) It refers to the conditions of a formal or simple contract that an adult signs with a minor. B) It refers to the obligations that people enter into before a court to do an act required by law. C) It refers to the penalties that a party faces if the party fails to honor the obligations of a contract. D)It refers to negotiable instruments such as checks, notes, drafts, and certificates of deposit.