In Which of the Following Company Attributes Would a Long-Term

question 61

Multiple Choice

In which of the following company attributes would a long-term bond holder be most interested?

• A)Quality of earnings
• B)Solvency
• C)Profitability
• D)Liquidity

---

Definitions:

Full Employment

A situation where all available labor resources are being used in the most efficient way possible, leading to no cyclical unemployment.

Frictional Unemployment

Short-term unemployment that arises from the process of workers moving between jobs or into the workforce.

Structural Unemployment

A form of unemployment caused by a mismatch between the skills that workers in the economy can offer and the skills demanded by employers.

Structural Unemployment

Refers to unemployment caused by structural changes in the economy such as technological advances, which create mismatches between the skills workers have and the skills needed for available jobs.