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NEW QUESTION: 1
Which of the following classes of securities are listed in order from lowest risk/opportunity for return to highest risk/opportunity for return?
A. Ordinary shares; corporate first mortgage bonds, corporate second mortgage bonds.
B. Corporate income bonds: corporate mortgage bonds: subordinated debentures.
C. Corporate first mortgage bonds; corporate income bonds; preference shares.
D. Preference shares; ordinary shares; corporate debentures.
Answer: C
Explanation:
The general principle is that risk and return are directly correlated. Corporate first mortgage bonds are less risky than income bonds or shares because they are secured by specific property. In the event of default, the bondholders can have the property sold to satisfy their claims. Holders of first mortgages have rights paramount to those of any other parties, such as holders of second mortgages. Income bonds pay interest in the event the corporation earns income. Thus, holders of income bonds have less risk than shareholders because meeting the condition makes payment of interest mandatory. Preference shareholders ro_0icc dividends only if they are declared, and the directors usually have complete discretion in this matter Alai. shareholders have claims junior to those of debit holders if the entity is liquidated.

NEW QUESTION: 2
Which process requires the Release Planning recommendation process to be executed manually so that a supply order gets created?
A. Min-Max planning replenishing a transfer order
B. Back-to-Back Order
C. Manual orders using File Based Data Load
D. Min-Max planning replenishing a purchase request
E. Drop Ship Order
Answer: B

NEW QUESTION: 3
Prior to setting IT objectives, an enterprise MUST have established its:
A. architecture.
B. policies.
C. strategies.
D. controls.
Answer: C