When Amazon

question 54

True/False

When Amazon.com launched in 1995,its business model called for virtual retailing that had no warehouses,no inventory,and no shipments.This model proved to work well for very large e-tailers.

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Definitions:

Senior Debt

Debt that takes precedence over other unsecured or junior debt owed by the issuer in terms of the order of payment in the event of a liquidation.

Junk Bond

A high-yield but high-risk bond issued by companies or municipalities considered to be at greater risk of default than more secure investment-grade bonds.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.