An Issue of Debentures Is an Example Of

question 23

Multiple Choice

An issue of debentures is an example of:

• A) a secondary market transaction.
• B) fundraising through financial intermediaries.
• C) a direct form of funding.
• D) an indirect form of funding.

---

Definitions:

Unprofitable Operations

Business activities that result in a net loss rather than generating profit for the company.

Leveraged Buyout

A transaction where a company is acquired using a significant amount of borrowed money to meet the cost of acquisition.

Going-Private Transactions

All publicly owned stock in a firm is replaced with complete equity ownership by a private group.

Incumbent Management

The current team or individual responsible for managing and making key decisions in an organization.