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:

Procedural Steps

A series of actions or operations conducted in a proper sequence to achieve a legal or regulatory outcome.

Criminal Case

Legal proceedings brought by the state against an individual or entity accused of committing a crime.

Pretrial Motions

Written or oral requests made to a court by one party prior to trial, asking for a decision on certain issues so they can be resolved before the trial begins.

Criminal Case

A legal proceeding involving the prosecution of someone accused of committing a crime.