With Regard to External Sources of Financing for Nonfinancial Businesses

question 17

Multiple Choice

With regard to external sources of financing for nonfinancial businesses in Canada, which of the following are accurate statements?

• A) Direct finance accounts for a larger share of external business financing in Canada than indirect finance.
• B) Since 1970, most of the newly issued corporate bonds and commercial paper have been sold directly to Canadian households.
• C) Indirect finance accounts for a larger share of external business financing in Canada than direct finance.
• D) Smaller businesses almost always raise funds by issuing marketable securities.

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