The ABC Corporation Issues a $1,000 Bond,with an Interest Rate

question 67

Multiple Choice

The ABC Corporation issues a $1,000 bond,with an interest rate of 10%,and a maturity date of 2015.This creates a liability for the ABC Corporation to pay the bondholder:

• A)$100 interest per year and $1,000 in the year 2015.
• B)10% of the selling price of the bond.
• C)an interest payment equal to the dividend payment distributed to the common stockholders.
• D)$1,100 annually until the year 2015.

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Definitions:

Tight Culture

A social system characterized by strong norms and low tolerance for deviant behavior, promoting uniformity in actions and values.

High Uncertainty Avoidance

A cultural dimension indicating a society's discomfort with uncertainty and ambiguity, leading to supportive rituals and norms to reduce unpredictability.

Masculinity-femininity

A cultural dimension that describes the degree to which a society reinforces traditional masculine and feminine roles.

Assertiveness

is the quality of being self-assured and confident without being aggressive.