Donton Inc

question 79

Multiple Choice

Donton Inc., a public relations firm, buys doughnuts for an office party. In this case, Donton has purchased a _____.

• A) credence good
• B) composite good
• C) business product
• D) consumer product

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Definitions:

Bearer Form

Bond issued without record of the owner’s name; payment is made to whoever holds the bond.

Bond Issue

A bond issue refers to the process by which a borrower, like a corporation or government, issues bonds to raise funds from investors who lend them money for a defined period at a fixed interest rate.

Owner's Name

The identity of the legal individual or entity that holds ownership or title to an asset or property.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments. Instead, they are issued at a discount to their face value, and their profit comes from the difference between the purchase price and the face value paid at maturity.