A Sinking Fund Is Useful to a Corporation Because

question 52

Multiple Choice

A sinking fund is useful to a corporation because:

• A)the corporation does not have to worry about paying the bondholders.
• B)it provides the corporation with the option to buy the bonds back at the lower of face value or market price.
• C)the payments to the sinking fund are not necessary when the firm is in financial difficulty.
• D)they are simple and easy to monitor.

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Definitions:

Peer influences

The impact that individuals of similar age or status in a group have on each other’s behaviors or attitudes.

Emerging adulthood

A phase of human development occurring from late teens to early twenties, characterized by exploration of identity and self-concept.

Decision-making Competence

The ability to make choices that are informed, logical, and reflective of one's goals and values.

Adolescents

Individuals in the transitional stage of physical and psychological development that occurs between childhood and adulthood, typically ranging from ages 10 to 19.