Bonds

question 30

Multiple Choice

Bonds

• A) represent the true ownership of a corporation.
• B) are equity securities.
• C) represent the long-term borrowing of funds by a corporation.
• D) provide a proportionate interest in a corporation with regard to control.

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Definitions:

Collectively

refers to actions or measures taken as a whole by a group of people or entities.

Primarily Liable

Having the main or first responsibility for a debt or obligation.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name on it.

Valid Defense

A legitimate legal reason presented in a court to counteract or negate allegations made in a lawsuit.