As He Was Approaching Retirement, Gabriel Began a Search for a Low-Risk

question 53

True/False

As he was approaching retirement, Gabriel began a search for a low-risk investment. He should consider buying a secured bond of a major corporation.

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Definitions:

Economic Entity

An organizational unit for which it is possible to separate financial information and which conducts economic activities independently.

Consolidated Financial Statements

The financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.

Ownership Interest

The right or claim an individual or entity has on assets, often evidenced by equity or shares in a company.

Parent

An entity that controls one or more entities.