MBA 601 - Video 3 Flashcards Questions With All
Correct Answers
The primary advantages of investing in stock are (select all that apply):
correct answer -unlimited upside
voting rights
The primary advantages of investing in bonds are (select all that apply):
correct answer -Easier to value than stock
Known payment amount
Know when you are going to get paid
Less risk than investing in stock
Priority over stockholders in bankruptcy
When companies issue stock they give up (select all that apply) correct
answer -ownership and the right to future earnings
Control
The advantages of issuing bonds are (select all that apply) correct answer -
Limited upside
Financial leverage
Is it riskier for a company to issue stocks or bonds? You have to think about
this one. correct answer -Bonds
Correct Answers
The primary advantages of investing in stock are (select all that apply):
correct answer -unlimited upside
voting rights
The primary advantages of investing in bonds are (select all that apply):
correct answer -Easier to value than stock
Known payment amount
Know when you are going to get paid
Less risk than investing in stock
Priority over stockholders in bankruptcy
When companies issue stock they give up (select all that apply) correct
answer -ownership and the right to future earnings
Control
The advantages of issuing bonds are (select all that apply) correct answer -
Limited upside
Financial leverage
Is it riskier for a company to issue stocks or bonds? You have to think about
this one. correct answer -Bonds
