__________Are Described as a Cushion of Extra Resources That Can

question 30

Multiple Choice

__________are described as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities.

• A) Slack resources
• B) Strategic groups
• C) Secondary firms
• D) Standing plans

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Definitions:

Call Provision

A feature of a bond or other fixed-income security that allows the issuer to repay the principal before the maturity date, typically at a premium.

Bond Rating

A measure of the likelihood of default on payment of interest or principal. Ratings are prepared by rating agencies. The best known agencies are Moody’s and Standard and Poor’s.

Restrictive Covenants

Provisions in a contract or loan agreement that limit the borrower's actions, intended to protect the lender by maintaining the borrower's creditworthiness.

Call Provision

A clause in a bond contract that allows the issuer the right to redeem the bond before its maturity date under specific conditions.