Which of the Following Is Not a Reason Why Bonds

question 5

Multiple Choice

Which of the following is not a reason why bonds are considered safer than most other types of securities?

• A)The annual income received is flexible
• B)The contracted-for loan principal is likely to be repaid in full at the stated date
• C)Should bankruptcy occur,bondholders have priority in receiving the proceeds from liquidation of business assets
• D)All of the above are reasons why bonds are considered safer
• E)None of the above is a reason why bonds are considered safer

---

Definitions:

Registered Agent

A person or company designated to receive official legal and tax documents on behalf of a business entity.

Surviving Corporation

The corporation that remains after a merger, having absorbed another corporation and retained its rights, privileges, and liabilities.

Total Assets

The sum of all current and non-current assets owned by an individual or company, reflecting the total resources or value that the entity controls.

Dissenters' Rights

Legal provisions that allow shareholders to object to certain corporate actions, usually by selling their shares for a fair value.