Which of the Following Is the Best Example of a 'What

question 110

Multiple Choice

Which of the following is the best example of a 'what?' question?

• A) Should higher-income or lower-income people buy SUVs?
• B) Should cars be produced using workers or robots?
• C) Should we make faster microprocessors or pest-resistant corn?
• D) Should migrant workers or domestic workers be used to pick grapes?
• E) What should doctors be paid?

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Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those to common stockholders.

Common Stock

A type of security that signifies ownership in a corporation, entitling the holder to a share of the company's assets and profits.

Pre-Tax Cost of Debt

The interest rate a company pays on its borrowings before taking into account any tax deductions.

Zero-Coupon Bonds

Zero-coupon bonds are debt securities that are issued at a discount to their face value and don’t pay interest before maturity; instead, investors receive the face value at maturity.