Credit Risk Refers to the Probability That the Issuer of a Bond

question 133

True/False

Credit risk refers to the probability that the issuer of a bond will fail to pay some or all of the interest or principal.

Recognize the ethical and legal issues involved in business dealings and the exploitation of trust or authority.

Differentiate between the various factors that can affect the enforceability of a contract such as concealment, duress, and undue influence.

Evaluate the relevance and application of legal doctrines in specific contractual disputes and case law.

Understand the importance of factual bases and the reliance on them in forming contracts.

---

Definitions:

Virtual Teams

Groups of people who work together from different geographical locations, connected by electronic communication technologies.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Cross-functional Teams

Teams composed of members from different departments within an organization, working together to achieve a common goal.

Effectiveness

The degree to which objectives are achieved and the desired results are obtained efficiently.