Questions: A bond may be issued as evidence of the company's debt. - article - agreement - contract - certificate

A bond may be issued as evidence of the company's debt.
- article
- agreement
- contract
- certificate
Transcript text: A bond $\qquad$ may be issued as evidence of the company's debt. - article - agreement - contract - certificate
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Solution

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The answer is "certificate": A bond may be issued as evidence of the company's debt.

Explanation for each option:

  • Article: This term generally refers to a piece of writing or a clause in a legal document. It is not typically used to describe a bond, which is a financial instrument.

  • Agreement: While a bond involves an agreement between the issuer and the bondholder, the term "agreement" is too broad and does not specifically refer to the document that evidences the debt.

  • Contract: A bond is indeed a type of contract, as it represents a formal agreement to repay borrowed money with interest. However, in the context of the question, "certificate" is a more precise term for the document that serves as evidence of the debt.

  • Certificate: This is the correct answer. A bond certificate is a document that serves as evidence of the debt owed by the issuer to the bondholder. It outlines the terms of the bond, including the principal amount, interest rate, and maturity date.

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