Match These Terms with Their Definitions

question 80

Multiple Choice

Match these terms with their definitions.
-Agreement whereby the legal owner of the asset retains substantially all of the risks and obligations of ownership

• A)Callable bonds
• B)Long-term lease
• C)Convertible bonds
• D)Debenture bonds
• E)Junk bonds
• F)Mortgage bonds
• G)Notes payable
• H)Short-term lease
• I)Secured bonds

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, and entitles the holder to vote on corporate matters and receive dividends.

Long-term Investment

Investments made with the expectation that they will yield benefits or appreciation over a period extending beyond one year.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Minority Active Investment

An investment where the investor holds a non-controlling interest in a company but is still actively involved in its management or operations.