Which of the Following Statements Is Correct

question 90

Multiple Choice

Which of the following statements is correct?

• A)Stock is a form of debt capital.
• B)Bonds are a form of debt capital.
• C)Stock must be repaid at maturity.
• D)Bonds do not have to be repaid at maturity.
• E)Interest payments to bondholders are at the discretion of the corporation.

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Definitions:

Marketing Plan

An extensive plan or framework detailing a corporation's promotional and marketing strategies for the upcoming year.

Black And White

A term often used to describe a situation or view that is clear-cut, with no gray area or ambiguity.

Caption

A caption is a brief explanation or description accompanying an illustration, photo, or diagram, often providing context or additional information.

Sustainable Competitive Advantage

A long-term strategy that a company possesses, which enables it to remain more competitive than its rivals, leading to greater sales or margins and retaining loyal customers.