With Regard to External Sources of Financing for Nonfinancial Businesses

question 17

Multiple Choice

With regard to external sources of financing for nonfinancial businesses in Canada, which of the following are accurate statements?

• A) Direct finance accounts for a larger share of external business financing in Canada than indirect finance.
• B) Since 1970, most of the newly issued corporate bonds and commercial paper have been sold directly to Canadian households.
• C) Indirect finance accounts for a larger share of external business financing in Canada than direct finance.
• D) Smaller businesses almost always raise funds by issuing marketable securities.

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Definitions:

Human Resource Functions

The various activities and responsibilities that HR departments undertake to manage an organization's workforce effectively.

Outsourcing

The practice of hiring third parties to perform services or create goods that were traditionally performed in-house, often to reduce costs or access specialized skills.

Competitors

Other businesses or individuals offering similar products or services in the same market, engaging in a rivalry to gain greater revenue, market share, or recognition.

Documenting

The process of systematically recording information, events, or processes, often for purposes of evidence, compliance, or record-keeping.