1)

In 2005, Shintech Inc. issued a $500,000 bond to raise money for an international expansion project. The bond issue was set up so that $100,000 of the bond would mature and be paid-off each year for the next five years. What type of bond did Shintech issue?

Group of answer choices

B. Debenture bonds

D. Serial bonds

A. Municipal bonds

C. Sinking fund bonds

E. Mortgage bonds

2)

If Anso Corporation issues a bond that is backed by a pledge of their production machinery and equipment, this is an example of a/an _________.

Group of answer choices

C. Secured bond

D. Municipal bond

B. Debenture bond

E. Unsecured bond

A. Convertible bond

3)

Which of the following is not one of the characteristics of common stock?

Group of answer choices

D. Have residual claim to company assets

4)

Which of the following is not one of the characteristics of debt holders or creditors?

Group of answer choices

E. Paid regardless of income

D. Prior claim on income

A. Prior claim on assets

C. Have a voice or vote in company decisions

B. Specified date of maturity

5)

Which of the following is not one of the primary changes as a result of the Sarbanes-Oxley Act?

Group of answer choices

D. Requires corporations to practice corporate philanthropy

E. Provides for protection of whistleblowers from retaliation

C. Requires corporate executives to sign-off or attest to the validity of financial statements

A. Requires immediate and accurate disclosure of changes in financial position

B. Provides for criminal penalties for violation of the SOX Act

C. Can earn capital gains through increases in stock price

A. Are true owners of the corporation

B. Receive preference in the payment of dividends

E. Can vote on major company decisions