Which of the Following Is the Correct Order of Corporate

question 102

Multiple Choice

Which of the following is the correct order of corporate issues based on risk and return? (most risk-return to least risk-return)

• A) common stock, subordinated debentures, secured debt, treasury bills
• B) preferred stock, common stock, subordinated debentures, secured debt
• C) common stock, long-term government bonds, secured debt, subordinated debt
• D) common stock, secured debt, subordinated debentures, preferred stock

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Definitions:

Consumer Surplus

The difference in planned versus actual spending by consumers on a good or service.

Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service to different consumers, based on their ability to pay, in order to maximize profits.

Privatizing

The act of moving control and ownership from the government to private entities, including businesses, enterprises, agencies, or public services.

Monopolizing

The act or process by which a single seller gains exclusive control over a market, limiting competition and often leading to higher prices for consumers.