Which of the Following Could Be Considered a Form of Perpetuity

question 7

Multiple Choice

Which of the following could be considered a form of perpetuity?

• A)The college tuition payments that students make for four years.
• B)A 20-year corporate bond.
• C)A university scholarship endowment that promises to pay out $10,000 per year for an indefinite time period.
• D)A contract from the winning lottery ticket to receive cash flows for the next 30 years.

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Definitions:

Bylaws

The rules and regulations enacted by an organization or community to provide a framework for its operations and management.

Secretary of State

A senior government official responsible for keeping official records and executing certain duties, varying by country or state, often involving foreign affairs or administrative tasks.

Limited Liability

A legal structure that limits the amount of money that company owners or shareholders can lose in case the business fails, typically their investment in the company.

Corporate Debts

Obligations that a corporation owes to creditors, which can include bank loans, bonds, and other forms of borrowing.