A bond holder is part owner of the firm.

Name: A bond holder is part owner of the firm.
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Question

Quizplus · Accepted Answer

Bond holders are lenders to the firm and have a contractual agreement with the firm to receive fixed interest payments and their principal amount at the maturity of the bond. They do not have any ownership stake or voting rights in the company. Shareholders are the owners of a company who have voting rights and can receive dividends based on the company's performance.

A Bond Holder Is Part Owner of the Firm