Fear Appeal Is a Type of Persuasive Communication That ___________

question 83

Multiple Choice

Fear appeal is a type of persuasive communication that ___________.

• A)influences behavior on the basis of arousing fear instead of rational analysis of the issues
• B)influences behavior on the basis of first arousing fear which then results in a rational analysis of the issues
• C)typically causes people to not act on the issue
• D)influences behavior based on sound reasoning

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, typically not indicative of market value.

Call Price

The price at which a callable bond or security can be redeemed by the issuer before its maturity.

Negative Covenants

Provisions in a loan agreement that restrict certain actions of the borrower to protect the lender's interests.

Bond Indenture

A legal contract detailing the terms and conditions under which a bond is issued, including interest rates, maturity dates, and issuer obligations.