A ________ Represents a Long-Term Debt Obligation Issued by a Corporation

question 109

Multiple Choice

A ________ represents a long-term debt obligation issued by a corporation or a government.

• A) share of stock
• B) commercial note
• C) certificate of deposit
• D) bond

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its operations instead of renting, selling, or utilizing them in other ways.

Implicit Costs

The opportunity costs of using resources that a firm already owns, typically non-out-of-pocket costs.

Explicit Costs

Direct, out-of-pocket payments for goods or services used in production, such as wages or rent.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenue, not considering implicit costs.