The Purpose of a Sinking Fund Is To

question 96

Multiple Choice

The purpose of a sinking fund is to:

• A) reduce the par value of stock over time.
• B) take advantage of the tax break on preferred stock.
• C) periodically retire debt prior to final maturity.
• D) allow risky corporations to avoid bankruptcy.

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Definitions:

Ego Resiliency

In Jack Block’s personality theory, the ability to vary one’s level of ego control in order to respond appropriately to opportunities and situational circumstances.

Psychological Adjustment

The process of achieving a healthy, balanced state of psychological well-being through adapting to new conditions or the environment.

Self-monitoring

The tendency of individuals to observe and regulate how they are perceived by others, adjusting their behavior accordingly.

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.