Unsecured debt holders are creditors who have ________.
A) a specific claim against particular assets
B) a specific claim against fixed assets only
C) a general claim against fixed assets only
D) a general claim against total assets

Question

Quizplus · Accepted Answer

Unsecured debt holders have a general claim against total assets, meaning they do not have a specific claim against particular assets or fixed assets only. They are not guaranteed repayment and their claims are subordinate to secured debt holders in the event of bankruptcy or liquidation.

Unsecured Debt Holders Are Creditors Who Have ________