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:

General Partners

Parties in a partnership who are responsible for the management of the partnership and are personally liable for its debts.

Limited Partners

Investors in a limited partnership who are only liable for the business's debts and obligations up to the amount of their investment.

Limited Partnership

A form of partnership featuring both general partners, with unlimited liability, and limited partners, with liability limited to their investment.

Tax-Paying Entity

An individual or organization required by law to pay taxes to a governmental authority.