Which One of the Following Statements Is Correct

question 79

Multiple Choice

Which one of the following statements is correct?

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

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Definitions:

Rational

Refers to decision-making that is based on logic and reason, often assuming that individuals choose the option with the greatest personal benefit.

Free Money

Resources or funds received without the requirement for repayment, often perceived as grants or gifts.

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A service that broadcasts audio content to the public through radio waves or digital transmissions.

Economic Analysis

Economic analysis involves examining data and using economic theory to understand and predict economic phenomena and inform decisions.