When a Corporation Issues a Bond

question 34

Multiple Choice

When a corporation issues a bond

• A)the purchaser of the bond assumes ownership rights in the corporation.
• B)it is making a promise to pay interest each year and to repay the principal at a stated time in the future.
• C)it is called equity capital.
• D)it is called financing through the stock market.
• E)it is making a promise to pay interest each year but not repay the principal.

---

Definitions:

Effectiveness Rate

A measure of the success of a treatment, medication, or intervention in achieving its intended result under typical everyday conditions.

Cervical Os

The opening of the cervix that leads from the vagina to the uterus.

Abnormal Condition

A state that diverges from the norm in structure, function, or psychology, often leading to disease or health issues.

-ectomy

A suffix used in medical terminology to denote the surgical removal of a specified part of the body.