In the Context of Small Businesses, Which of the Following

question 65

Multiple Choice

In the context of small businesses, which of the following is true of debt securities?

• A) Commercial banks prefer to make long-term loans.
• B) Publicly issued debt is commonly used by small firms.
• C) Small companies rely on loans from commercial banks.
• D) Insurance companies prefer to make short-term loans.

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Definitions:

Direct Suit

A legal action initiated directly by an individual or entity against another party, without the need for intermediary steps, typically for injury or damage.

Lawsuit

A legal action brought in court by one party against another for the purpose of obtaining a remedy such as damages or specific performance.

Litigation Right

The legal ability to initiate a lawsuit or engage in court proceedings as a method of resolving disputes.

Self-Dealing

A situation where an individual in a fiduciary position acts to further their own interests rather than those of the individuals or entity they represent.