Seattle Music, Inc

question 229

Multiple Choice

Seattle Music, Inc., recently offered bonds for sale to the public. The unsecured corporate bond paid interest of 9% to investors for the twenty-year life of the bonds. Seattle Music is obligated to:

• A) Represent each bondholder as an owner in the company.
• B) Pay interest semi-annually.
• C) Pay stockholders their dividends, before paying bondholders their interest.
• D) Pay each owner their principal if and when they want to cash in their investment.

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Definitions:

ATMs

Automated Teller Machines, devices that allow bank customers to perform financial transactions without the need for a branch representative.

Bank Tellers

Employees of a bank who deal directly with customers, handling transactions, cash checks, accept deposits, and provide account information.

Bank Branches

Physical locations of a bank where customers can perform various financial transactions, such as deposits, withdrawals, loan applications, and account inquiries.

Employment

The condition of having paid work or the number of people who are currently employed in the economy.