1. Which is a debt that must be repaid after 1 year or more, and is used by businesses to raise capital to expand operations?

		Contingent liability
		Current liability
		Accrued liability

1. All of the following statements about a corporation's board of directors are true, except:

		It is a group of individuals elected by the shareholders.
		It hires managers to run the company and employees to work for the company.
		It is a group of individuals who represent the shareholders' interests.
		It delegates the responsibility for the day to day management of the corporation to top executives.

1. Marcos, a bond investor, typically buys bonds that are repaid in increments. He also wants the right to trade the bonds for shares of a company's common stock. Which type of bonds does Marcos prefer?

		Serial, convertible bonds
		Unsecured, callable bonds
		Term, convertible bonds
		Secured, callable bonds

1. Carson Construction has a 20-year, secured loan with ABC Bank, which was used to purchase a bulldozer. The bank has not received a loan payment from Carson Construction in 6 months. Given Carson's failure to repay the loan, what does ABC Bank have the contractual right to do?

		Charge a higher interest rate
		Convert the note to a bond
		Issue a bond to raise capital
		Repossess the bulldozer