Since They Require Less Monitoring of Firms,________ Contracts Are Used

question 45

Multiple Choice

Since they require less monitoring of firms,________ contracts are used more frequently than ________ contracts to raise capital.

• A)debt;equity
• B)equity;debt
• C)debt;loan
• D)equity;stock

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Definitions:

Trade Discounts

Reductions in the listed price of goods and services, offered by sellers to buyers in the business-to-business market.

Wholesalers

Businesses that buy goods in bulk from manufacturers or distributors and sell them in smaller quantities to retailers or other businesses.

Merchandising Company

A business that purchases finished products and sells them to consumers without changing their form.

Inventory

Goods or materials a business holds for the purpose of resale or production.