Distinguish Between Direct Finance and Indirect Finance

question 40

Essay

Distinguish between direct finance and indirect finance. Which of these is the most important source of funds for corporations in the United States?

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Definitions:

Duty of Indemnity

The obligation to compensate for loss, damage, or liability incurred by another, often arising from contractual agreements or the law of agency.

Tort Damages

Tort damages refer to compensation awarded to a person who has suffered loss or harm due to the unlawful act or negligence of another.

Unauthorized Acts

Actions taken by an individual or entity without the necessary permission or authority, often leading to legal consequences.

Confidential Information

Information that is not public knowledge and is protected by law or agreement, disclosing it only to those who are authorized.