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If a Business Fails to Make a Profit

Question 44

Multiple Choice

If a business fails to make a profit


A) it must still pay a dividend.
B) you would probably be better off holding a bond issued by the business than holding stock issued by the business.
C) you would probably be better off holding stock issued by the business than holding a bond issued by the business.
D) its shareholders may end up being liable for much more than they have invested in the business.

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