Bond Rating Services

question 9

Multiple Choice

Bond rating services:

• A)evaluate credit or default risk.
• B)can affect bond prices by the ratings they give.
• C)classify Government of Canada bonds as nearly default risk free.
• D)all of the above

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including income statement, balance sheet, and statement of cash flows.

Proprietorship

A type of business entity owned and operated by one individual, where there is no legal distinction between the owner and the business.

Owner's Equity

The amount of ownership interest in a business, represented by the company's assets minus its liabilities.

Statement of Owner's Equity

A financial document that details the changes in the equity of a company over a specific period, including investments, withdrawals, and earnings.