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.

---

Definitions:

Robbers' Cave State Park

The location of a famous social psychology experiment by Muzafer Sherif, investigating intergroup conflict and cooperation.

Muzafer Sherif

A pioneering figure in social psychology known for his work on group conflict, social norms, and the “Robbers Cave” experiment which studied intergroup relations.

Group Competition

A situation where two or more groups compete against each other to achieve a goal or win a prize.

Person Perception

The process by which individuals form impressions of others based on observed or inferred information.