Which of the Below Statements Is FALSE

question 24

Multiple Choice

Which of the below statements is FALSE?

• A) Warrants may be attached as part of a bond issue with each warrant granting the holder the right to purchase a designated security at a specified price from the issuer of the bond.
• B) The conversion provision in a corporate bond issue grants the bondholder the right to convert the bond to a predetermined number of shares of common stock of the issuer.
• C) A callable bond grants the bondholder the right to sell the issue back to the issuer at par value on designated dates.
• D) Zero-coupon bonds are bonds without coupon payments or a stated interest rate.

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Definitions:

Owners' Equity

Owners' equity, similar to stockholders' equity, is the proportion of a company's total value that belongs to its owners or shareholders, reflecting the net assets after liabilities have been deducted.

Accounts Receivable

Funds that a business is due to receive from its clients for products supplied or services rendered, but which have not been paid for yet.

Capital Balances

The amount of money that owners have invested in a company, plus any retained earnings or minus any losses.

Partnership

An authorized business setup in which a group of individuals jointly manage the operation and distribution of profits.