Which of the Following Statements Concerning External Sources of Financing

question 99

Multiple Choice

Which of the following statements concerning external sources of financing for nonfinancial businesses in Canada is true?

• A) Stocks are a far more important source of finance than are bonds.
• B) Stocks and bonds, combined, supply less than one-half of the external funds.
• C) Financial intermediaries are the least important source of external funds for businesses.
• D) Since 1970, more than half of the new issues of stock have been sold to Canadian households.

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Definitions:

Conjunction Fallacy

A logical error where individuals incorrectly believe that specific conditions are more probable than a single general one.

Probabilities

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates an impossibility and 1 indicates certainty.

Uncertain Events

Situations or occurrences with an unpredictable outcome due to a lack of information or inherent variability.

Isolated Cases

Instances or occurrences that are distinct from and not representative of the general situation or condition.