Which of the Following Is a Difference Between Common Stock

question 52

Multiple Choice

Which of the following is a difference between common stock and bonds?

• A) Bondholders have a voice in management; common stockholders do not.
• B) Bondholders have a senior claim on assets and income relative to stockholders.
• C) Stocks have a stated maturity but bonds do not.
• D) Dividend paid to stockholders is tax-deductible but interest paid to bondholders are not.

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Definitions:

Ego

In psychoanalysis, refers to the component of the personality that is responsible for dealing with reality, balancing the demands of the id and superego.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear.

Talkativeness

The tendency to engage in excessive talking, often characterized by the frequent and prolonged expression of thoughts, feelings, or information.

Organization

The act or process of structuring or arranging components in a systematic way to achieve goals or maintain order.