What Is One Difference Between Stocks and Bonds

question 31

Multiple Choice

What is one difference between stocks and bonds?

• A)Bonds earn a higher rate of return than stocks.
• B)Stocks earn a higher rate of return than bonds.
• C)Bonds are purchased at a bank,while stocks are purchased through the federal government.
• D)Stocks represent partial ownership in a firm,while bonds do not.

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Definitions:

Costs

The monetary value required to produce goods or services, including materials, labor, and overhead.

Transfer Price

The price at which divisions of a company transact with each other, such as the sale of goods or services, often used for internal accounting.

Upstream Division

A segment within a company that focuses on the initial stages of production or the supply chain, such as raw materials acquisition.

Downstream Division

The section of a company involved with the processing, marketing, and sale of products derived from raw materials.