Nongovernmental Issues Typically Have Slightly Higher Yields Than Government Issues

question 131

Multiple Choice

Nongovernmental issues typically have slightly higher yields than government issues with similar maturities due to the slightly ________ associated with them.

• A) higher profitability
• B) higher risk
• C) lower risk
• D) stronger secondary market

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Definitions:

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a set of guidelines and standards for financial reporting and accounting practices to ensure consistency and transparency.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements globally.

Noncontrolling Interest

It refers to the ownership in a subsidiary not attributable to the parent company, representing a minority share that does not control the company.