Corporations Try to Create Hybrid Securities That Look Like Equity

question 9

Multiple Choice

Corporations try to create hybrid securities that look like equity but are called debt because:

• A) debt interest expense is tax deductible.
• B) bankruptcy costs are eliminated or reduced.
• C) these securities have lower risk than debt.
• D) Both debt interest expense is tax deductible; and these securities have lower risk than debt.
• E) Both debt interest expense is tax deductible; and bankruptcy costs are eliminated or reduced.

Describe the behavior of electrostatic charges on different materials (conductors vs insulators).

Recognize the practical applications and hazards associated with static electricity.

Understand the formation and discharge process of lightning.

Explain the functioning of devices based on static electricity, such as electroscopes and precipitators.

---

Definitions:

Buyers

Individuals or entities that purchase goods or services for personal use or organizational needs.

Choices

The range of different options or decisions from which an individual can select or make a decision.

Technology

The use of scientific understanding to achieve practical goals, particularly within the industrial sector.

Cruises

Ocean or sea voyages taken for pleasure, often visiting several places and with various leisure facilities onboard.