Which of the Following Instruments Demonstrates the Safety of Principal

question 153

Multiple Choice

Which of the following instruments demonstrates the safety of principal characteristic common to marketable securities?

• A) common stock
• B) derivatives
• C) options
• D) Treasury bonds

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Definitions:

Contingency Thinking

Contingency thinking is an approach that considers the possible variations in a situation and plans for multiple potential scenarios, acknowledging that there is no one-size-fits-all strategy.

Uncertain Environment

Lacks so much information that it is difficult to assign probabilities to the likely outcomes of alternatives.

Stable Environment

An environment characterized by predictability, consistency, and minimal change, allowing organizations to plan with greater certainty.

Corporate Social Responsibility

Business practices involving initiatives that benefit society and go beyond the interests of the company.