If Southwest Airlines Borrows $20 Million from a Bank to Finance

question 125

Multiple Choice

If Southwest Airlines borrows $20 million from a bank to finance the renovation of their corporate offices, this is an example of

• A)a bond market transaction.
• B)indirect finance.
• C)a stock market transaction.
• D)direct finance.

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Definitions:

Contractual Obligations

Duties that parties are legally bound to perform as specified in a contract, the failure of which could lead to legal consequences.

Fraudulent Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

False Statements

Deliberately untrue declarations made with the intention to deceive people or legal entities.

Injury

Physical harm or damage to an individual's body, or harm in legal contexts to someone's rights or reputation.