Which of the Following Is NOT an Action or Consequence

question 69

Multiple Choice

Which of the following is NOT an action or consequence of the activities of bond rating agencies?

• A)In assessing the rating, the agency examines financial ratios, contract terms (restrictive covenants), and important qualitative factors.
• B)When a material change is identified in any of the factors used to measure a bond's default risk, the agency will immediately announce a change in the rating.
• C)With respect to qualitative factors, the agency will pay particular attention to ratios, measuring return on assets, interest coverage, and operating profit margins.
• D)While it is the mandate of the agency to report on the creditworthiness of securities held by bondholders, their findings are also relevant to the firm's shareholders.

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Definitions:

Leadership

The act of guiding or influencing a group towards achieving a common goal, often involving motivation, direction, and setting an example.

Management

The administration and coordination of tasks to achieve a goal, involving the organization and direction of resources.

Important Phrases

Key or significant expressions within a text or speech that carry substantial meaning or emphasis.

Videoconferencing

The use of video technology to conduct a conference between two or more participants at different sites.