Question: Chapter 14 - Long-Term Liabilities 1. What is the main difference between a bond and a share of stock? 2. What are the contract rate

Chapter 14 - Long-Term Liabilities 1. What is the main difference between a bond and a share of stock? 2. What are the contract rate and the market rate for bonds? 3. Describe the debt-to-equity ratio and explain how creditors and owners would use this ratio to evaluate a company's risk. 4. What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the business? 5. Compare and contrast and operating lease with a capital lease

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