When Corporations Default on Their Debt

question 71

Multiple Choice

When corporations default on their debt:

• A)bondholders may receive the firm's assets.
• B)bondholders will suffer a loss.
• C)the board of directors is liable for the payments.
• D)the corporation is forced to default on its stock also.

---

Definitions:

Candle Flame

The visible part of a candle light, produced by the hot, glowing combustion of the candle wick and wax.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images to electrical signals sent to the brain.

Fovea

The fovea is a small depression in the retina of the eye where visual acuity is highest due to the concentration of cones, which are responsible for color vision.