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:

Constant Internal State

The concept of maintaining a stable, consistent internal environment in an organism, also known as homeostasis.

An Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli that is unlearned.

An Instinct

A fixed, innate pattern of behavior in animals in response to certain stimuli.

Robins

Small, common songbirds known for their reddish-orange breasts and melodious songs.