A Sinking Fund May Be Useful to a Corporation Because

question 29

Multiple Choice

A sinking fund may be useful to a corporation because

• A)the corporation does not have to worry about paying the bondholders.
• B)it may provide the corporation with the option to acquire the bonds 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:

Defendant

The person, party, or entity against whom a civil or criminal lawsuit is filed in a court of law.

Slander

The act of making false and damaging spoken statements about someone, leading to harming their reputation.

Libel

A published false statement that is damaging to a person's reputation; a written defamation.

Defamation

The act of damaging someone's reputation by making false and harmful statements.