To Create an Enforceable Security Interest Between Finance Corporation and Global

question 63

Multiple Choice

To create an enforceable security interest between Finance Corporation and Global Trade Inc. with a written security agreement, the agreement must contain a description of

• A) the debtor.
• B) the creditor.
• C) the surety.
• D) the collateral.

Identify different sources of government revenue and their importance.

Recognize the primary sources of federal tax revenue and their order of importance.

Comprehend the major categories of federal spending.

Understand the opportunity cost of borrowing to finance government deficits.

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Definitions:

Debt Financing

The raising of funds through borrowing, either by issuing bonds or taking out loans, which creates a liability to be repaid over time.

Return on Common Stockholders' Equity

A measure of profitability that indicates how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Asset Turnover

A profitability ratio that measures how effectively a business is using its assets to generate sales, computed as sales divided by average total assets (excluding long-term investments).

Dividend Yield

The dividend per share a company pays out to its shareholders annually, expressed as a percentage of the stock's current market price.