Chunky Chicken,Inc

question 16

Multiple Choice

Chunky Chicken,Inc.announced yesterday that it plans to issue $100 million in debenture bonds to fund the expansion of its fast food chain of restaurants.In financial terms,this means:

• A)The corporation will borrow $100 million worth of long-term financing.The bond issue will not carry any collateral.
• B)The corporation will issue $100 million worth of equity financing.The bond issue will be backed by the property and buildings purchased with the funds.
• C)The corporation will borrow $100 million worth of long-term financing.The issue will be backed by the property and buildings purchased with the funds.
• D)The corporation will issue $100 million worth of interest free bonds.Financiers will be paid from the revenues created by the individual franchises.

---

Definitions:

Make An Argument

Refers to the process of giving one or more reasons in support of a claim.

Argument Analysis

The process of evaluating an argument by examining its structure, validity, and logical coherence.

Mapping

The process of representing or outlining the relationship between elements in a space or concept.

Implicit Assumption

An underlying premise that is taken for granted or understood without being explicitly stated.