Which One of the Following Statements Comparing Debt Versus Equity

question 130

Multiple Choice

Which one of the following statements comparing debt versus equity offerings is correct?

• A) Debt offerings are more expensive due to the indenture agreement.
• B) Debt offerings dilute ownership more than equity offerings do.
• C) Debt offerings are more likely to be privately placed than equity offerings.
• D) Equity registrations require an indenture agreement.
• E) Equity offerings must be registered with the OSC, whereas debt offerings do not.

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Definitions:

Majority Vote

A decision rule where more than half of the participants need to agree on a proposal for it to be approved.

Paired-Choice Vote

A voting method in which participants are presented with pairs of options and choose their preference within each pair, often used to rank preferences or make decisions.

Ranked Preferences

Ordering alternatives based on their desirability from most to least preferred.

Majority Voting

A voting system where decisions are made and actions are taken based on the preferences of the majority of voters, often applied in democratic governance and organizational decision-making.