That Only Large,well-Established Corporations Have Access to Securities Markets

question 20

Multiple Choice

That only large,well-established corporations have access to securities markets

• A)explains why indirect finance is such an important source of external funds for businesses.
• B)can be explained by the problem of moral hazard.
• C)can be explained by government regulations that prohibit small firms from acquiring funds in securities markets.
• D)explains why newer and smaller corporations rely so heavily on the new issues market for funds.

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