Businesses Typically Issue Bonds to Finance

question 29

Multiple Choice

Businesses typically issue bonds to finance

• A)their inventories.
• B)payments to their workers.
• C)spending on new plant and equipment.
• D)dividend payments to their stockholders.

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Definitions:

Predistribution Plan

A strategy aimed at addressing income inequality through policy measures affecting the market distribution of income before taxes and transfers, rather than by adjusting after-tax incomes.

Financial Report

A formal record of the financial activities and position of a business, individual, or other entity over a period.

Liquidation

The process of closing a business and distributing its assets to claimants, typically after a company is unable to meet its financial obligations.

Profit and Loss Ratio

Measures the efficiency of a company in generating profits from its operations, calculated by dividing net profit by net sales.