When a Corporation Decides to Issue Long-Term Debt in Order

question 56

Multiple Choice

When a corporation decides to issue long-term debt in order to pay for the acquisition of real assets,it has made a:

• A) capital budgeting decision.
• B) financing decision.
• C) money market decision.
• D) secondary market decision.

---

Definitions:

Multilink

A type of suspension system in vehicles that features multiple links or arms for improved handling and comfort.

4WD

Four-wheel drive, a system that powers all four wheels of a vehicle simultaneously for better traction.

Linear Rate

In the context of springs, a linear rate refers to a constant rate of compression or extension, meaning the force required to compress or extend the spring is consistent throughout its movement.

Variable Rate

An interest or finance charge rate that can change over the period of the loan or credit agreement, often tied to an index or benchmark.