Ling Owns and Operates Metro Delivery Service as a Sole

question 68

Multiple Choice

Ling owns and operates Metro Delivery Service as a sole proprietorship. When she dies, the business will automatically

• A)dissolve.
• B)transfer to Ling's heirs.
• C)reform with its employees as the owners.
• D)transfer to its creditors.

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Definitions:

Coupon Rate

The interest rate stated on a bond or other fixed-income security, represented as a percentage of the principal amount.

Restrictive Covenants

Clauses in a contract that limit certain actions of the parties involved, often used in employment agreements and loan documents to protect business interests.

Call Provision

A feature in certain debt instruments that allows the issuer to repay the debt before its maturity date, usually at a specified call price.

Sinking Fund

A fund established by an organization to set aside revenue over a period for the future repayment of debt.