Why Did Freight Businesses Not Immediately Shift to the Railroads

question 28

Multiple Choice

Why did freight businesses not immediately shift to the railroads when they were first built?

• A) Companies distrusted the safety of the steam engine.
• B) Companies received financial incentives from the government to stay with canal routes.
• C) Canal boats were cheaper.
• D) Companies were not convinced of their reliability.
• E) Companies were fiercely loyal to the canal operators.

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Definitions:

Conversion Value

The monetary value of a convertible security if it were converted into shares of the underlying company at the current market price.

Convertible Bond

A bond which offers the option to be exchanged for a specific number of the issuing company's stock at certain periods throughout its duration, typically at the option of the person holding the bond.

Equity

represents the value of the shares issued by a company, denoting the ownership interest held by shareholders in the corporation.

Call Option

A monetary agreement allowing the possessor the choice, yet not the compulsion, to acquire a stock, bond, commodity, or any other asset for a prearranged price within a set interval.