Which One of the Following Is Not True

question 39

Multiple Choice

Which one of the following is not true?

• A) A bond issuer's rating is affected by its default risk.
• B) An investor holding the bond until maturity expects to receive its par value.
• C) Inflation does not affect the interest rates of bonds.
• D) Rating agencies use financial statements to assess the default probability of firms.

Grasp the concept of diffusion through the adoption of innovations by competitors or other industries.

Identify the characteristics and examples of start-up firms.

Understand the concept and examples of entrepreneurship.

Recognize innovation within an existing business firm.

---

Definitions:

Securities Regulation

The body of laws and rules governing the issuance, trading, and sale of securities to protect investors and ensure market integrity.

Stock Market Crash

A stock market crash is a rapid and often unanticipated decline in stock prices across a significant cross-section of a stock market, resulting in a loss of paper wealth.

Intrinsic Value

The inherent worth of something based on its qualities and utility, independent of external factors like market conditions.

Private Placement Situation

A method of raising capital through the sale of securities to a relatively small number of select investors rather than through a public offering.