Which of the Following Are Generally Considered Advantages of Term

question 27

Multiple Choice

Which of the following are generally considered advantages of term loans over publicly issued bonds?

• A) Lower flotation costs.
• B) Speed,or how long it takes to bring the issue to market.
• C) Flexibility,or the ability to adjust the bond's terms after it has been issued.
• D) All of the above.
• E) Only answers b and c above.

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Definitions:

Short-run Cost Function

The costs a company incurs in the production of goods or services within a short period, considering some inputs are fixed.

Long-run Cost Curve

A graphical representation showing the minimum cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Hair Dryers

Electrical devices used to blow dry hair by emitting warm air.

Economies of Scope

Cost advantages that arise from a firm or company expanding its product line or markets, exploiting shared resources or technologies.