If a Bond Issue Has a Sinking Fund Provision Then

question 102

Multiple Choice

If a bond issue has a sinking fund provision then

• A) the corporation makes payments, based upon a preconceived schedule, to a trustee who uses these funds to retire bonds by purchasing them in the marketplace.
• B) the indenture allows the value of the bonds to fall to a pre-identified price before default occurs.
• C) a certain portion of the interest payments on the bond are used to retire bonds by purchasing them in the marketplace.
• D) none of the above.

Understand the psychological importance of job titles.

Acknowledge the importance of job analysis in validating HR practices and its relation to job-relatedness.

Identify the relationship between job requirements and training needs through KSAOs.

Comprehend the components and importance of job descriptions and specifications.

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Definitions:

Cash Outflow

Outgoing payments in cash from a company to cover expenses, investments, and financing activities.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence ongoing investment decisions.

Opportunity Costs

The cost of opting for one alternative over another, typically representing the benefits one misses out on when choosing a particular option.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.