Which of the Following Is the Correct Order of Corporate

question 56

Multiple Choice

Which of the following is the correct order of corporate issues based on risk and return? (From most risk-return to least risk-return.)

• A) Common stock, subordinated debentures, secured debt, Treasury bills
• B) Preferred stock, common stock, subordinated debentures, secured debt
• C) Common stock, long-term government bonds, secured debt, subordinated debt
• D) Common stock, secured debt, subordinated debentures, preferred stock

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Definitions:

Rigid

Characterized by inflexibility or the inability to adapt to new situations, often leading to inefficiency or failure in changing environments.

Unwieldy

Difficult to handle, control, or manage due to size, complexity, or awkwardness.

Mechanistic Structures

Organizational structures characterized by rigid hierarchies, strict rules, and centralized decision-making, typical in stable environments.