Which of the Following Statements Concerning the Use of Sinking

question 11

Multiple Choice

Which of the following statements concerning the use of sinking funds to repurchase a bond issue is NOT true?

• A)The firm makes regular payments into a sinking fund administered by a trustee over the life of the bond.
• B)The firm can reduce the amount of outstanding debt without affecting the cash flows of the remaining bonds.
• C)Payments from the sinking fund are used to repurchase bonds.
• D)Bonds can be issued with a sinking fund provision or a call provision,but not both.

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Definitions:

Activated Needs

Activated needs are desires or requirements that have been triggered by internal or external stimuli, prompting individuals to take action.

Acquired Needs Theory

A psychological theory suggesting that individuals acquire certain needs through their life experiences, such as the needs for achievement, affiliation, and power, which influence their motivation and behavior.

Need For Achievement

A motivational drive that pushes individuals to reach success, excel in their endeavors, and overcome challenges through personal effort.

Job Enrichment

Enhancing a job's meaningfulness through allowing more autonomy, responsibility, and variety in tasks, often to improve employee satisfaction and performance.