Which of the Following Can Be Described as Involving Indirect

question 78

Multiple Choice

Which of the following can be described as involving indirect finance?

• A) A bank buys a U.S. Treasury bill from one of its depositors.
• B) A corporation buys commercial paper issued by another corporation.
• C) A pension fund manager buys commercial paper in the primary market.
• D) Both A and C of the above.

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Definitions:

Distributorship

A business arrangement in which a manufacturer or supplier authorizes an entity to distribute its products.

Secret Formula

A proprietary and confidential composition or recipe that gives a product its unique characteristics and is closely guarded to maintain a competitive advantage.

Joint Stock Company

a business entity in which shares of the company's stock can be bought and sold by shareholders.

Partnership Agreement

A binding contract between partners that outlines the rules, responsibilities, and financial arrangements of their partnership.