Which of the Following Would Be an Indication That Corporate

question 35

Multiple Choice

Which of the following would be an indication that corporate debt is disguised equity?

• A)Debt is issued to the shareholders in the same proportion as stock
• B)The debt has a specified maturity date
• C)The debt has a specified interest rate
• D)Interest is paid annually
• E)None of the above

---

Definitions:

Consumers' Desire

The inclination or preference of consumers towards certain goods, services, or experiences.

Economic Function

The role or purpose that an entity or phenomenon serves within the broader economy, such as production, distribution, or consumption.

Profits and Losses

Financial outcomes of a business's operations where profits represent the excess of revenues over expenses and losses reflect the opposite.

Distribution of Income

The way in which the total income earned in an economy is divided among its citizens or factors of production.