Which One of the Following Is a Characteristic of Equity

question 3

Multiple Choice

Which one of the following is a characteristic of equity as opposed to debt?

• A)Voting rights are typically attached.
• B)There is a fixed maturity date.
• C)There is a legal contract.
• D)There is a fixed payment schedule.

---

Definitions:

Periodic Interest Rate

The interest rate applied to a loan or investment over a specific period of time, shorter than a year.

Annuity

A fiscal tool that guarantees fixed periodic payments to a beneficiary, usually as a component of retirement planning.

Payment Interval

The interval at which payments are issued, like monthly, every three months, or once a year.

Periodic Interest Rate

The interest rate charged or paid over a particular period of time, often less than a year, such as monthly or quarterly.