Which of the Following Is True About Premiums

question 88

Multiple Choice

 Which of the following is true about premiums? 

• A) They are prizes that are available either through chance selection or games of skill.
• B) They are rewards or gifts that can come from purchasing a product.
• C) They are the most familiar and widely used of all consumer promotions.
• D) They entitle buyers to additional amounts of a product.

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Definitions:

Maturity

The date on which a financial obligation, note, bond, or loan must be repaid in full or the final payment is due.

Bond Indenture

The contract between a bond issuer and the bondholders, outlining terms such as interest rates, repayment schedules, and other conditions.

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments.

Issuing Company

The entity that offers its own securities like stocks or bonds for sale to investors to raise capital.