Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)Bond ratings encourage widespread investor participation and relatively liquid markets.
• B)Bonds in the top four categories are often referred to as investment grade bonds.
• C)A bond's rating depends on the risk of bankruptcy as well as the bondholder's ability to lay claim to the firm's assets in the event of a bankruptcy.
• D)Debt issues with a low-priority claim in bankruptcy will have a better rating than issues from the same company that have a higher priority in bankruptcy.

---

Definitions:

Materials

The tangible physical substances or components needed to produce a product or carry out a project.

Resource Maturity

Resource maturity refers to the stage of development at which a business or system efficiently utilizes its resources, balancing between growth potential and sustainability.

Existence

The state or fact of living, being, or operating; in business, it may refer to the ongoing operation or presence of a company in a market.

Solo

Refers to an individual performing or working alone, without a partner or group.