Which of the Following Is True About Rights

question 36

Multiple Choice

Which of the following is true about rights?

• A) The owner has several years in which to exercise the option.
• B) They are a type of short- lived call option.
• C) They are a type of short- lived put option.
• D) They are usually attached to bonds as a "sweetener"

---

Definitions:

Variable Manuf. Cost

Expenses that vary in direct relation to the amount of production, including costs like raw materials and direct labor.

Unavoidable Allocated Fixed Corporate Costs

These are fixed costs that are essential and non-avoidable, allocated across different departments or projects within a corporation.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.