What Feature Distinguishes the Asset Class, BONDS, from the Asset

question 1

Multiple Choice

What feature distinguishes the asset class, BONDS, from the asset class, CASH, according to the definitions used in this book?

• A)All cash assets are risk-free; most bonds are not.
• B)Cash assets are all backed by the U.S. government, but bonds may be issued by corporations and are not guaranteed by the U.S. government.
• C)Bonds are debt instruments while cash is equity.
• D)Bonds are longer-term debt instruments than cash assets.

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Definitions:

Open-book Management

A business practice where a company shares detailed financial reports and data with all employees to involve them in its financial performance and decision-making processes.

Compensation

The package of salary, wages, and additional benefits that an employee receives in exchange for their work within an organization.

Electronic Brainstorming

A technique that utilizes electronic devices to gather a large number of ideas from different people simultaneously.

Groupware

Software designed to help people work together more effectively, especially in collaborative projects across different locations.