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NEW QUESTION: 1
Which of the following statements is correct regarding both debt and common shares of a corporation?
A. Common shares typically have a fixed maturity date, but debt does not.
B. Common shareholders and debt holders have an ownership interest in the corporation.
C. Common shares have a higher priority on liquidation than debt.
D. Common shares represent an ownership interest in the corporation, but debt holders do not have an
ownership interest.
Answer: D
Explanation:
Choice "a" is correct. Common shares represent an investment in the corporation whereby the common
shareholder becomes a part owner of the corporation. A debt holder is a creditor of the corporation. The
corporation has borrowed money from the debt holder and promises to repay at a later date. A debt holder
is not an owner of the corporation.
Choice "b" is incorrect. Unlike a common shareholder, a debt holder does not have an ownership interest
in the corporation.
Choice "c" is incorrect. Common shares do not have a fixed maturity date, but debt securities do.
This answer is backwards.
Choice "d" is incorrect. Upon liquidation of a corporation, the creditors of the corporation are paid first.
After the creditors are paid, the shareholders are paid on a pro rata basis. Thus, debt holders (creditors)
have a higher priority than stockholders.

NEW QUESTION: 2
Which statements describe the routing protocol OSPF? (Choose three.)
A. It is simpler to configure than RIP v2.
B. It is used to route between autonomous systems.
C. It allows extensive control of routing updates.
D. It supports VLSM.
E. It increases routing overhead on the network.
F. It confines network instability to one area of the network.
Answer: C,D,F
Explanation:
Explanation/Reference:
The OSPF protocol is based on link-state technology, which is a departure from the Bellman-Ford vector based algorithms used in traditional Internet routing protocols such as RIP. OSPF has introduced new concepts such as authentication of routing updates, Variable Length Subnet Masks (VLSM), route summarization, and so forth.
OSPF uses flooding to exchange link-state updates between routers. Any change in routing information is flooded to all routers in the network. Areas are introduced to put a boundary on the explosion of link-state updates. Flooding and calculation of the Dijkstra algorithm on a router is limited to changes within an area.

NEW QUESTION: 3
Which term is used to describe a class that inherits functionality from an existing class?
A. Derived class
B. Superclass
C. Base class
D. Inherited class
Answer: A
Explanation:
Explanation/Reference:
Classes (but not structs) support the concept of inheritance. A class that derives from another class (the base class) automatically contains all the public, protected, and internal members of the base class except its constructors and destructors.

NEW QUESTION: 4
Sue Wie, CFA, is the chief financial officer for Garth Company. The company will need to borrow S75 million in the near future to fund a plant expansion. Wie expects interest rates will rise and decides to hedge against this risk using a 3 * 6 LIBOR based forward rate agreement (FRA). The underlying rate for this FRA is:
A. 60-day LIBOR.
B. 180-day LIBOR.
C. 90-day LIBOR.
Answer: C