Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A)A stock can possibly pay dividends forever,but bonds have a fixed number of payments.
• B)Differences of opinion about a bond's future may vary considerably but there is less difference about a stock's future.
• C)The future growth of a stock is more certain than the payments of a bond.
• D)Bonds represent partial ownership in a firm but stocks do not.

---

Definitions:

Straight Life Insurance

Insurance that requires the payment of premiums throughout the life of the insured and pays the beneficiary the face value of the policy upon the insured’s death.

Face Value

The nominal or original value printed on a security or financial instrument, such as a bond or stock certificate.

Lapse Policy

A situation where an insurance policy becomes inactive because premiums have not been paid.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms and agreements in which the insurer agrees to pay the insured for specific loss, damage, illness, or death in return for payment of a premium.