An investment in an entity's debt instruments makes that investor a(n)
A) owner of the issuing entity.
B) creditor of the issuing entity.
C) parent company.
D) subsidiary.

Name: An investment in an entity's debt instruments makes that investor a(n) A) owner of the issuing entity. B) creditor of the issuing entity. C) parent company. D) subsidiary.
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Question

Quizplus · Accepted Answer

An investment in a debt instrument makes the investor a creditor of the issuing entity, not an owner, parent company or subsidiary.

An Investment in an Entity's Debt Instruments Makes That Investor