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:

Community Psychology

A branch of psychology that focuses on the relationships of individuals within a community and the influence of the community on individuals, emphasizing social issues, public health, and preventive measures.

Social Institutions

The organized, patterned, and enduring sets of social structures that provide guidelines for behavior and help society carry out its essential functions.

Well-Being

The state of being comfortable, healthy, or happy, often considered a holistic measure of one's quality of life and mental and physical health.

Common Sense

The natural ability to make sound judgments and reasonable decisions based on practical life experience.