Which of the Following Statements About the Characteristics of Debt

question 110

Multiple Choice

Which of the following statements about the characteristics of debt and equity is false?

• A) They can both be long-term financial instruments.
• B) They can both be short-term financial instruments.
• C) They both involve a claim on the issuer's income.
• D) They both enable a corporation to raise funds.

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Definitions:

Articulation

The clarity and effectiveness with which thoughts, feelings, or concepts are expressed, or the process of making such expressions clear.

Cohesion

The degree to which members of a group or team stick together, united by shared goals, mutual support, and a sense of belonging.

Efficient Communication

The process of exchanging information in a way that minimizes waste and maximizes clarity and understanding.

Effective Communication

The exchange of information in a manner where the intended message is successfully delivered, received, and understood by all parties involved.