With Regard to External Sources of Financing for Nonfinancial Businesses

question 48

Multiple Choice

With regard to external sources of financing for nonfinancial businesses in the United States,which of the following are accurate statements?

• A)Marketable securities account for a larger share of external business financing in the United States than in Germany and Japan.
• B)Since 1970,most of the newly issued corporate bonds and commercial paper have been sold directly to American households.
• C)Direct finance accounts for more than 50 percent of the external financing of American businesses.
• D)Smaller businesses almost always raise funds by issuing marketable securities.

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Definitions:

M'Naghten Rule

A legal principle defining the insanity defense by assessing if a defendant was incapable of understanding the wrongness of their action due to a mental disorder at the time of the crime.

Legally Insane

A legal term indicating a person's inability to understand the nature of their actions or distinguish right from wrong due to mental illness.

Mental Disorder

A condition that affects a person's thinking, feeling, behavior, or mood, significantly impacting daily life and functioning.

Insanity Defense

A legal defense used in criminal trials arguing that the defendant was not responsible for their actions due to psychiatric illness at the time of the crime.