Which of the Following Is Not an Advantage of Owning

question 86

Multiple Choice

Which of the following is not an advantage of owning debt securities?

• A)high claim on cash flows of a firm
• B)highest return of corporate securities
• C)high claim on assets of in liquidation
• D)none of the above

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Definitions:

Unequally Distributed

The condition in which resources, power, or opportunities are not shared equitably among all parties or individuals involved.

Uncertainty-avoidance Cultures

Cultures that have a low tolerance for ambiguity and uncertainty, often favoring strict rules and conventions to minimize the unpredictability of social interactions.

Ambiguous Situations

Scenarios or circumstances that lack clarity or have multiple interpretations, often leading to confusion or complexity in decision-making.

Stable Rules

Regulations or principles that remain constant and unchanged over time.