Businesses Acquire Long-Term Financing from Two Major Sources

question 215

Multiple Choice

Businesses acquire long-term financing from two major sources,

• A) debt financing and government funds.
• B) equity financing and trade credit.
• C) retained earnings and commercial paper.
• D) debt financing and equity financing.

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Definitions:

U.S. Trade Deficit

The situation where the total value of goods and services the United States imports from other countries is more than the total value of goods and services it exports to those countries.

Net Exports

The difference between a country's total exports and total imports, representing the value of goods and services exported minus the value of goods and services imported.

NAFTA

The North American Free Trade Agreement, a treaty entered into by the United States, Canada, and Mexico; it was superseded by the United States-Mexico-Canada Agreement (USMCA) in 2020.

Trade Deficits

A situation in which a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in.