Which of the Following Statements Concerning External Sources of Financing

question 70

Multiple Choice

Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?

• A) Issuing marketable securities is the primary way that they finance their activities.
• B) Bonds are the least important source of external funds to finance their activities.
• C) Stocks are a relatively unimportant source of finance for their activities.
• D) Selling bonds directly to the American household is a major source of funding for American businesses.

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Definitions:

Ethical Treatment

The application of morally correct procedures and interactions, especially in professional and personal relations.

Bias And Prejudice

The inclination or prejudgment towards individuals, groups, or ideas without fair justification, often based on stereotypes or unfounded beliefs, that can affect decisions and actions.

Ethical Dilemma

A situation where a person must choose between conflicting moral principles, with no option clearly being the right choice.

Profitability Estimates

Calculations or projections concerning the amount of profit a business is expected to generate over a certain period.