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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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.