Direct Finance Involves the Sale to ________ of Marketable Securities

question 28

Multiple Choice

Direct finance involves the sale to ________ of marketable securities such as stocks and bonds.

• A)households
• B)insurance companies
• C)pension funds
• D)financial intermediaries

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Required Sales

Required sales represent the amount of sales needed to achieve a specific objective, such as covering costs or reaching a profit target.

Operating Income

Refers to the profit earned from a firm's core business operations, excluding non-operating income and expenses.

Variable Costs

Expenditures that fluctuate in alignment with the amount of goods produced or sold, including direct labor costs and raw materials.