Most Businesses Prefer to Meet Their Long-Term Financial Needs Through

question 62

Multiple Choice

Most businesses prefer to meet their long-term financial needs through

• A) debt financing.
• B) capital from the sale of stock.
• C) retained earnings.
• D) capital from the sale of bonds.

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Definitions:

Debt Investments

Financial assets involving a loan made by an investor to a borrower, typically involving the issuance of bonds, notes, or other forms of debt securities.

Trading Securities

Investments in debt or equity securities that a company plans to actively buy and sell for profit in the near term.

Short-term Profits

Short-term profits are the earnings a company generates over a brief period, often emphasizing immediate financial performance rather than long-term sustainability.

Market Price

The contemporary selling or buying price for a service or asset.