Which One of the Following Identifies a New Bond Issue

question 7

Multiple Choice

Which one of the following identifies a new bond issue as being a private placement?

• A)The proceeds of the issue are used for a single project.
• B)The issue is marketed through a sole brokerage house.
• C)The issue is sold only to individuals rather than to institutional investors.
• D)The issue is not made available to the public.
• E)The issue names a private individual as the bond trustee.

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Definitions:

Assets

Resources owned or controlled by a business from which future economic benefits are expected.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Depreciation

A method of allocating the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Market Value

The existing cost for acquiring or selling an asset or service in the unrestricted market.