Listed Below Are 5 Terms Followed by a List of Phrases

question 203

Multiple Choice

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Induced conversion

• A)No gain or loss recorded when convertible bond option is exercised.
• B)Requires(s) no cash outflow before maturity.
• C)Often traded separately from associated bonds.
• D)A practical expediency when not misleading.
• E)Additional consideration is recorded as an expense.

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Definitions:

Liable

Being legally responsible for something, typically referring to the obligation to compensate for loss or damage.

Disclosed Principal

A principal whose identity is known to a third party at the time the agent makes a contract with the third party.

Liable

Legally responsible or obligated, often in reference to the duty to compensate for harm or loss caused by one's actions or omissions.

Scope of Authority

The scope of authority delineates the range of actions or decisions that an individual or entity, such as an employee or agent, is officially empowered to make on behalf of another party or organization.