___________Are Debt Rated Ba or Lower by Moody's or BB

question 43

Multiple Choice

___________are debt rated Ba or lower by Moody's or BB or lower by Standard & Poor's and were commonly used by rapidly growing firms to obtain growth capital, most often to finance mergers and takeovers of other firms, particularly during the 1980s.

• A) Subordinated debentures
• B) Mortgage bonds
• C) Equipment trust certificates
• D) Junk bonds

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Definitions:

Stakeholders

Individuals, groups, or organizations that have an interest or concern in an organization and can be affected by the organization's actions, objectives, and policies.

Bounded Rationality

A concept that suggests individuals make decisions based on a limited amount of information and cognitive constraints.

Rational Choice

is a theory that assumes individuals make decisions based on the maximization of personal advantage, weighing benefits against costs.

Implicit Favorite

An often unrecognized bias towards a person or option that influences decision-making and judgment without conscious awareness.