Which of the Following Statements Is Correct

question 12

Multiple Choice

Which of the following statements is correct?

• A)The expected future profitability of a corporation influences the demand for that corporation's stock.
• B)When a corporation sells stock as a means of raising funds it is engaging in debt finance.
• C)The owners of bonds sold by the Microsoft Corporation are part owners of that corporation.
• D)All bonds are,by definition,perpetuities.

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Definitions:

Calories

A measure of energy in food, scientifically defined as the amount of energy needed to raise the temperature of 1 kilogram of water by 1 degree Celsius.

Marginal Utility

refers to the additional satisfaction or utility gained from consuming one more unit of a good or service.

Millionaires

Millionaires are individuals whose net worth or wealth is equal to or exceeds one million units of currency.

Budget Line

A graphical representation showing the combination of goods a consumer can purchase and consume within their income level at specific prices.