Which Term Is Synonymous with a Bond

question 18

Multiple Choice

Which term is synonymous with a bond?

• A) equity share
• B) preferred share
• C) debenture
• D) convertible note

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Definitions:

Common Stock

Represents an equity ownership in a corporation, giving holders voting rights and a share of the company's profits via dividends.

Cash Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.