Which of the Following Statements About the Characteristics of Debt

question 110

Multiple Choice

Which of the following statements about the characteristics of debt and equity is false?

• A) They can both be long-term financial instruments.
• B) They can both be short-term financial instruments.
• C) They both involve a claim on the issuer's income.
• D) They both enable a corporation to raise funds.

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Definitions:

Legitimating

The process of making something acceptable, valid, or legal, generally through formal approval or authentication.

Office Rules

Guidelines or regulations established to ensure smooth and efficient operations within an office or organization.

Policies

are formal guidelines or rules established by organizations, governments, or institutions to influence decisions and actions.

Core Tactics

Core tactics are the fundamental strategies or methods employed to achieve specific objectives or goals, often foundational to the success of an operation or campaign.