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.

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Definitions:

Transnational

Refers to entities, activities, or phenomena that cross or operate across national boundaries.

Company-level Committee

A body within an organization, typically made up of employees and management, meant to facilitate communication, address workplace issues, and sometimes participate in decision-making.

Information Rights

Legal rights to access and obtain certain information, which could pertain to government data, workplace policies, or consumer products.

Decision-making Authority

The power or right vested in a particular position or role within an organization to make decisions affecting its operations or directions.