A Sinking Fund Is Useful to a Corporation Because

question 52

Multiple Choice

A sinking fund is useful to a corporation because:

• A)the corporation does not have to worry about paying the bondholders.
• B)it provides the corporation with the option to buy the bonds back at the lower of face value or market price.
• C)the payments to the sinking fund are not necessary when the firm is in financial difficulty.
• D)they are simple and easy to monitor.

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Definitions:

Deboning Fish

The process of removing bones from fish, often performed to prepare the fish for cooking and consumption.

Preparing Soup Stock

The process of simmering bones, vegetables, and herbs in water to extract flavors and nutrients, serving as a base for making soups or sauces.

Detailed Training

A comprehensive and specific instructional program designed to enhance skills and knowledge in a targeted area.

Highly Committed

Describes a state of being deeply dedicated or loyal to a cause, activity, or job.