The Money Obtained from Selling Corporate Bonds

question 21

Multiple Choice

The money obtained from selling corporate bonds

• A)is obtained from lenders.
• B)is obtained from the owners of the business.
• C)is obtained from employee stock option programs.
• D)does not have to be repaid.
• E)has been allocated to retirement programs.

---

Definitions:

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Benefit

The further satisfaction or value an individual gains from consuming an extra unit of a certain product or service.

Optimal Quantity

The amount of a good or service that achieves the best balance between cost and benefit.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, which should not influence current or future business decisions.