A Disadvantage of Bonds Is

question 61

Multiple Choice

A disadvantage of bonds is:

• A) Bonds require payment of periodic interest.
• B) Bonds can decrease return on equity.
• C) Bonds require payment of principal.
• D) Bonds may not create financial leverage.
• E) All of these answers are correct.

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Definitions:

Private Branding

A branding strategy used when a company manufactures products but sells them under the brand name of a wholesaler or retailer. Also called private labeling or reseller branding.

Mixed Branding

A branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market.

U.S. Food and Drug Administration

A federal agency of the United States Department of Health and Human Services, responsible for protecting public health by ensuring the safety and efficacy of drugs, biological products, and medical devices.

Heartwise Cereal

A fictional or specific brand of cereal marketed for its cardiovascular health benefits.