Which of the following best characterizes a revenue bond?

A revenue bond is best characterized by being secured by revenue generated from a specific source, such as income from a project or facility financed by the bond. This type of bond relies on the cash flow produced from that project to repay bondholders, which means that the bond's safety and repayment depend on the success of the revenue-generating project.

In contrast, bonds backed by general taxation would fall into the category of general obligation bonds, which are supported by the government’s ability to levy taxes and are not directly tied to the revenue from a specific source.

Revenue bonds are often used for projects like toll roads, public utilities, or educational facilities, where the generated income from usage or services serves as the repayment source.

Additionally, revenue bonds are typically not issued as corporate financing, as their primary use is in public financing for government projects. They also are distinct from government agency bonds which are guaranteed by federal government entities and do not rely solely on project-specific revenues for repayment. Thus, option B accurately captures the essence of what defines a revenue bond.