BUSN 380 STUDY Career Path Begins/busn380study.com BUSN 380 STUDY Career Path Begins/busn380study.com | Page 66

The risk of business failure deals with changes in the value of stocks
and bonds due to changes and risks within a business itself.
The prices of stocks, bonds, and other investments fluctuate in the
market.
Question 6. Question : (TCO 5) A $1,000 corporate bond pays 9.0% a
year. What is the annual interest you will receive?
$90.00
$9.50
$900
$9,000
$0.90
Question 7. Question : (TCO 5) Jeremy is 22 years old and single. He
recently graduated from college and started his career making $30,000
a year. He has come to you asking for advice regarding a long-term
investment program. What would you recommend?
Government bonds
Corporate bonds
Commodities
A money-market fund
Question 8. Question : (TCO 5) John Farmer recently received a legal
form from the company where he owns stocks that list the issues to be
decided at the annual stockholders' meeting. The item asks that he
signs something that allows someone else to vote for him. What has he
received?