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:

Pay Plans

Systems or structures used by organizations to compensate employees, including wages, salaries, bonuses, and incentives.

Stock Plan Types

Various programs offered by companies to employees, allowing them to purchase company shares at favorable terms, such as Employee Stock Ownership Plans (ESOPs) or Stock Option Plans.

Suggestion Systems

Formal mechanisms within organizations where employees can propose ideas or improvements, often aimed at increasing efficiency or solving problems.

Problems

Challenges or obstacles that need to be addressed or resolved.