Which of the Following Statements Is Correct

question 16

Multiple Choice

Which of the following statements is correct?

• A)Michael Milken pioneered an active high-yield bond market in the late 1970s that provided much needed capital to entrepreneurs and financial innovators.
• B)Prior to Milken, the only junk bonds were those issued by once financially stable firms that had fallen on hard times.
• C)Milken showed investors that, historically, junk bonds rarely defaulted and offered a very high return to those willing to assume the risk of owning them.
• D)All of these statements are correct.

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Definitions:

Auditing Services

Professional services that examine and verify the accuracy of financial records and statements of a company.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Cost Control

The practice of managing and reducing business expenses to increase profits without compromising product or service quality.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the revenue generated from sales.