When a Firm Wants to Borrow Directly from the Public

question 24

True/False

When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling bonds.

---

Definitions:

Robinson-Patman Act

A 1936 law intended to prevent anticompetitive practices by producers, specifically price discrimination that could harm competition.

Sherman Act

A landmark federal statute passed in 1890 aimed at maintaining competition among businesses by prohibiting monopolies, cartels, and other forms of monopolistic practices.

Unreasonably Restrain

To limit someone's freedom to act or move in a manner that is excessive or beyond what is considered reasonable.

Sherman Act

An antitrust law in the United States passed in 1890 to prevent anticompetitive practices, monopolies, and to promote fair competition for the benefit of consumers.