Junk Bonds Are a Financing Option Through Which Risky Acquisitions

question 60

True/False

Junk bonds are a financing option through which risky acquisitions are financed with debt that provides a large potential return to bondholders.

---

Definitions:

Cash Balance

The amount of cash held by a company at a given point in time.

Minimum Cash Balance

The lowest amount of cash that a company aims to hold in its bank accounts at any time to meet routine operational expenses.

Cash Receipts

Money received by a business, including payments from customers, cash sales, and other sources of income.

Budgeted Beginning

The initial planned value or quantity for financial accounts or inventory levels at the start of a budget period.