Which of the Following Statements About the Characteristics of Debt

question 62

Multiple Choice

Which of the following statements about the characteristics of debt and equities is true?

• A) They can both be long-term financial instruments.
• B) Bond holders are residual claimants.
• C) The income from bonds is typically more variable than that from equities.
• D) Bonds pay dividends.

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Definitions:

Methanesulfonic Acid

A strong organic acid featuring a sulfonic acid group attached directly to a methane molecule, known for its good water solubility and use in organic reactions.

Acidic

Having properties of an acid, or a pH less than 7, capable of donating a proton (H+) to another compound.

Increasing Basicity

Describes the trend or sequence in which the ability of a substance to act as a base increases.

Increasing

Becoming larger or greater in size, number, value, or amount.