Which of the Following Is a Source of Long-Term Borrowing

question 210

Short Answer

Which of the following is a source of long-term borrowing from outside the corporation?
Corporate bonds
Sale of equity shares
Commercial paper
Line of credit
Inventory loans

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Definitions:

Par Common Stock

The value assigned to a share of common stock in the company's charter, not indicative of the market value.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with predetermined dividend payments.

Cash

Money in the form of bills or coins, available for transactions or banking.

Nonparticipating

A term typically used in insurance, referring to policies that do not entitle the policyholder to share in the insurer's surplus or profits.