One of the Advantages to the Corporation of an Underwriting

question 65

Multiple Choice

One of the advantages to the corporation of an underwriting syndicate for the issue of promissory notes is:

• A) they approve the prospectus before distribution to the public.
• B) the syndicate submits a combined bid for purchase that the corporation compares with other bids.
• C) the syndicate monitors and coordinates the actions of the different underwriters.
• D) the underwriting commitment gives the corporation access to a line of credit extending beyond the life of the promissory note.

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Definitions:

Just-World Phenomenon

A cognitive bias that leads people to believe that the world is inherently fair, causing them to rationalize an unjust situation as deserved by the victim.

Scapegoating

The practice of singling out any party for unmerited negative treatment or blame as a way of deflecting attention from one’s own failures or inadequacies.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Just-World Phenomenon

The belief that the world is fundamentally just, leading individuals to rationalize an undeserved fate for others as deserved.