Is It Possible for a Company to Have Two Debt

question 6

Multiple Choice

Is it possible for a company to have two debt issues with different debt ratings?

• A)No, the rating agency evaluates the creditworthiness of the company.
• B)Yes, but only if the company is a multinational and the debt has been issued in different countries.
• C)No, the company's credit is the same for all bonds.
• D)Yes, the rating agency evaluates the creditworthiness of the issue, not the company.

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Definitions:

Revenue-sharing Contract

An agreement between two or more parties that stipulates the proportion of revenue generated by a business venture to be distributed among the partners.

Consumer Demand

The desire and willingness of buyers to purchase goods and services at various price points.

Vertically Integrated

A company structure where the company owns its supply chain, from raw materials to the sale of the finished product, to control costs and quality.

Expected Profit

The forecasted amount of profit calculated by multiplying potential outcomes by their probabilities of occurrence.