Which of the Following Is True About Investments

question 282

Multiple Choice

Which of the following is true about investments?

• A) Most stockholders own stock because they want to run the business.
• B) The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future.
• C) Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
• D) Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.

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Definitions:

Term Introduction

The process or action of presenting and defining a new term or concept.

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A psychological state or trait in which a person realizes their full potential, acting autonomously and with a sense of fulfilling their capabilities.

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The state of being self-sufficient and free from outside control, managing one's own affairs without aid or influence.