As a Provider of Funds to a Corporation, Owning Which

question 53

Multiple Choice

As a provider of funds to a corporation, owning which of the following corporate securities will give you the most control rights?

• A)Short-term bank loan
• B)Long-term bond
• C)Preferred stock
• D)Common stock

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Definitions:

Current Assets

Assets owned by a company that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Carrying Costs

Expenses associated with holding or storing inventory over a period.

Cash Budget

An estimation of cash inflows and outflows over a specific period, used to manage and plan for any potential surplus or deficit in cash.

Shortage Costs

Costs incurred when the demand for a product exceeds the supply available, potentially including lost sales, expedited shipping fees, and lower customer satisfaction.