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.

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Definitions:

Free Will

The philosophical doctrine that humans have the capacity to make choices free from certain kinds of constraints.

Reciprocal Determinants

Factors that mutually influence each other, as in the interplay between an individual's behavior, personal factors, and environment.

Determinism

The philosophical belief that all events, including moral choices, are completely determined by previously existing causes.

Triadic Reciprocality

A concept in social cognitive theory suggesting that human behavior is influenced by the interaction of personal factors, behavior, and the environment.