Corporations Issue More Bonds When

question 67

Multiple Choice

Corporations issue more bonds when

• A) their stocks are publicly traded.
• B) the government runs a deficit.
• C) they perceive opportunities for profitable expansion.
• D) all of the above.

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Definitions:

Marketable Securities

Financial instruments or assets that can be easily converted into cash, typically including stocks and bonds.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's profits in the form of dividends.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Current Liabilities

Financial obligations a company owes and is required to settle within a year.