Which Suppliers of Funds Bear the Greatest Risk and Should

question 42

Multiple Choice

Which suppliers of funds bear the greatest risk and should therefore earn the greatest return?

• A) bondholders
• B) suppliers
• C) general creditors such as banks
• D) preferred shareholders
• E) common shareholders

---

Definitions:

Productive

The efficiency and effectiveness with which input resources (like time, labor, and materials) are transformed into outputs (goods or services) that generate value.

Rankings/Comparisons Performance

The assessment of an individual's or organization's performance relative to others based on specific criteria or standards.

Absolute Distance

A measure of the physical space between two points, often determined by a standard unit of length.

Behaviorally Anchored Rating Scales (BARS)

A performance appraisal method that rates behavior in terms of a scale showing specific examples of employee actions that represent various levels of performance.