A Sinking Fund May Be Useful to a Corporation Because

question 29

Multiple Choice

A sinking fund may be useful to a corporation because

• A)the corporation does not have to worry about paying the bondholders.
• B)it may provide the corporation with the option to acquire the bonds at the lower of face value or market price.
• C)the payments to the sinking fund are not necessary when the firm is in financial difficulty.
• D)they are simple and easy to monitor.

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Definitions:

Sociological Representation

Sociological representation refers to elected officials representing the demographic characteristics or interests of their constituents, such as race, gender, or economic status.

Legislative Body

A group of individuals with the authority to make laws for a political entity such as a country or city.

Agency Representation

A form of representation in which elected officials serve as agents of their constituents, acting in the constituents' interest rather than their own personal interest.

Pork Barrel

Refers to the allocation of government spending for localized projects secured primarily to bring money to a representative's district.