The Main Reason Why Banks Are the Leading Source of External

question 12

Multiple Choice

The main reason why banks are the leading source of external finance for businesses is

• A)the interest rates on bank loans are usually lower than interest rates on corporate bonds.
• B)banks have an information-cost advantage in reducing adverse selection problems.
• C)interest paid on bank loans is deductible against the corporate income tax, whereas interest paid on corporate bonds is not.
• D)government regulators encourage small businesses to obtain funding from banks.

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Definitions:

Venipuncture

The process of puncturing a vein with a needle to withdraw blood or insert fluids.

Evacuated collection tubes

Specialized tubes used in medical blood collection that are under vacuum to draw a predetermined volume of blood.

Phlebotomy

The practice of drawing blood from a vein, typically for laboratory testing or blood donation.

Morphology

The study of the shape or form of objects.