Which of the Following Is an Advantage of a Public

question 42

Multiple Choice

Which of the following is an advantage of a public bond issue over private placement?

• A)It can be tailored to the particular situation.
• B)It is less costly to issue.
• C)It does not need to be registered with the securities commission.
• D)It is freely tradable on the bond market.
• E)It is sold to a small group of investors.

Understand the concept of selection ratio.

See the relevance of validity studies in improving selection decisions.

Recognize the impact of external labour market on selection strategies.

Acknowledge the critical role of high-quality hires in organizational success.

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Definitions:

Interest-bearing Note

A debt instrument that requires the issuer to pay the lender interest over the life of the note, in addition to repaying the principal amount at maturity.

Maturity Value

The total amount due to the owner of an investment at the end of its term, including principal and interest.

Notes Receivable

A claim against a debtor for an uncollected amount, typically evidenced by a formal instrument of credit.

Face Value

The nominal value printed on a bond, note, or other financial instrument, representing its value at maturity.