Borrowers Can (And Sometimes Do)default on Their Loans When

question 88

Multiple Choice

Borrowers can (and sometimes do) default on their loans when

• A)the dividend yield on their shares of stock reaches zero.
• B)they convert their bonds into perpetuities.
• C)they declare bankruptcy.
• D)they cannot find enough buyers of their bonds to sell all the bonds they wish to sell.

---

Definitions:

Coalition Tactic

A strategy in influence and negotiation involving the formation of a temporary alliance or partnership of individuals or groups to achieve a specific objective.

Upward Appeal

A tactic used in organizational politics where individuals seek to influence decisions by appealing to higher-level managers or authorities.

Downward Influence Tactic

Strategies or methods used by individuals in higher organizational positions to affect the attitudes or behaviors of subordinates.

Exchange Tactics

Strategies used in negotiations that involve giving something to get something else in return.