All of the Following Represent Differences Between Stocks and Bonds

question 6

Multiple Choice

All of the following represent differences between stocks and bonds except

• A)a stock can possibly pay dividends forever, but bonds have a fixed number of payments.
• B)differences of opinion about a stock's future may vary considerably but there is less difference about a bond's future.
• C)the future growth of a stock is more uncertain than the payments of a bond.
• D)bonds represent partial ownership in a firm but stocks do not.

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Definitions:

Service Businesses

Companies that earn revenue primarily through providing intangible products, such as services or expertise, rather than selling physical goods.

Merchandising Business

A type of business that purchases products from other businesses and sells them to customers.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and their transportation costs as soon as they leave the seller's premises.

Freight

The charge paid for transport of goods by sea, air, or land.