Raising Long-Term Funds Through the Sale of Bonds Requires the Firm

question 347

True/False

Raising long-term funds through the sale of bonds requires the firm to make debt repayment when and if the organization has sufficient cash flow.

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Definitions:

Monopolistically Competitive Firms

Companies in a market structure where many firms sell products that are similar but not identical, competing on factors besides price.

Economic Profits

The financial gain exceeding the total costs, including both the explicit and implicit costs, of a business operation.

Long Run

A period in economics sufficient for all markets to adjust to equilibrium, including the production and entry and exit of firms.

Economic Profit

The financial margin that results from subtracting a business's complete costs, covering both explicit and implied ones, from its total income.