Bonds that are general obligations of a corporation are
A) debentures.
B) equipment obligations.
C) indentures.
D) mortgage bonds.

Question

Quizplus · Accepted Answer

Debentures refer to unsecured bonds that are backed only by the issuer's general creditworthiness and not by any specific asset. General obligation bonds of a corporation are also unsecured and rely on the overall creditworthiness of the corporation. Therefore, the best choice is (A) debentures. The other choices (B) equipment obligations, (C) indentures, and (D) mortgage bonds all refer to specific types of secured bonds.

Bonds That Are General Obligations of a Corporation Are