Which of the Following Statements About the Characteristics of Debt

question 62

Multiple Choice

Which of the following statements about the characteristics of debt and equities is true?

• A) They can both be long-term financial instruments.
• B) Bond holders are residual claimants.
• C) The income from bonds is typically more variable than that from equities.
• D) Bonds pay dividends.

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Definitions:

Survival

The ability of an organism to continue living or existing, often despite facing adverse conditions.

Exponential Growth

Growth whose rate becomes ever more rapid in proportion to the growing total number or size.

Arithmetic Growth

A pattern of growth where a population increases by a constant amount in each time period.

Logistic Growth

Population increase that results in an S-shaped curve; growth is slow at first, steepens, and then levels off due to environmental resistance.