With Regard to External Sources of Financing for Nonfinancial Businesses

question 48

Multiple Choice

With regard to external sources of financing for nonfinancial businesses in the United States,which of the following are accurate statements?

• A)Marketable securities account for a larger share of external business financing in the United States than in Germany and Japan.
• B)Since 1970,most of the newly issued corporate bonds and commercial paper have been sold directly to American households.
• C)Direct finance accounts for more than 50 percent of the external financing of American businesses.
• D)Smaller businesses almost always raise funds by issuing marketable securities.

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Definitions:

Sternberg

Refers to Robert Sternberg, an American psychologist known for his theories on intelligence and creativity.

Objective Tests

Assessments that have fixed answers and are scored without bias, often in the form of multiple-choice, true/false, or fill-in-the-blank questions.

Stanford-Binet Test

A standardized intelligence test used to measure cognitive abilities and intellectual potential in individuals.

Normal Range

The set of values within which a normal function or phenomenon occurs; often used in a medical context.