What is a sinking fund and why would a company want to establish it?
What will be an ideal response?
A sinking fund is where the bond issuer sets aside money periodically to redeem a portion of the issued bonds. Keep in mind that bonds, unlike loans, only require interest payments, which means the bond issuer has to pay back the entire amount of the original loan (all of the bonds sold) at maturity. That is a lot of money. The sinking fund is a way to build up an account to pay off or redeem the bonds. This takes away some of the default risk for bondholders. If the issuing company does not meet the sinking fund requirements, a trustee can step in and take legal action.
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The bond department shows gross sales of $179,000 and cost of goods sold of $46,000 . What is the gross profit of the bond department?
a. $154,000 b. $133,000 c. 67.2% d. 32.8%
President Donald Trump declared a 20 percent border tax on imports from Mexico to pay for the border wall. Which is the MOST likely effect of the border tax?
a. It will result in Mexico paying for the wall. b. It will result in American consumers paying for the wall. c. Both Mexico and America will pay for the wall. d. Mexico will avoid paying for the wall by raising their prices.
Which one of the following is not appropriate for improving the effectiveness of the disciplining process?
A. Discipline should be consistent with the severity of the offense. B. Discipline should be delayed until the employee has had time to forget about the offense. C. The employee should be told how to correct the situation. D. The discipline should be restricted to the immediate problem.
Sales promotion aimed at company's own sales force is called trade promotion.
Answer the following statement true (T) or false (F)