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DSST Business Law II Exam Prep

Category - DSST Business Law II

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A long-term, unsecured debt instrument that is based on a corporation's or government's general credit standing is known as a:

Corporate bond.
Voucher.
Treasury bill.
Debenture.
Convertible bill.

Explanation

Answer: D. A long-term, unsecured debt instrument that is based on a corporation's or government's general credit standing is known as a debenture. A debenture is not backed by collateral. A treasury bond is an example of a government debenture.

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