Which of the Following Are Advantages of Owning Bonds

question 33

Multiple Choice

Which of the following are advantages of owning bonds?
I. diversification properties
II. higher long-term returns than equity holdings
III. current income
IV. relatively low risk

• A) I and II only
• B) I, III and IV only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Business Entity

An organization established as a separate legal entity for the purposes of conducting business, such as a corporation, partnership, or sole proprietorship.

Time Periods

Specific intervals or durations used for accounting and reporting purposes, such as fiscal quarters or years.

Bank Loan

A sum of money lent by a bank to a borrower at an agreed interest rate.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and prepare the company's books for the next period.