Which of the Following Is True

question 291

Multiple Choice

Which of the following is true?

• 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:

Atmosphere

The layer of gases surrounding Earth, crucial for sustaining life by providing oxygen and protecting the planet from harmful solar radiation.

Groundwater

the water present beneath Earth's surface in soil pore spaces and in the fractures of rock formations.

Lakes

Bodies of freshwater or sometimes saline water occupying large depressions on the Earth's surface, often fed by rivers or streams.

Ice Caps

Large areas covered with ice that are smaller than ice sheets, found in polar and subpolar regions, significantly affecting the regional climate.