Of the Following Sources of External Finance for American Nonfinancial

question 100

Multiple Choice

Of the following sources of external finance for American nonfinancial businesses,the least important is

• A) loans from banks.
• B) stocks.
• C) bonds and commercial paper.
• D) nonbank loans.

Explain the principles of the Statute of Frauds and its relevance to contract enforceability.

Analyze contractual disputes and the role of the judiciary in interpreting and rectifying contract terms.

Understand the limitations and characteristics of projective tests.

Comprehend the principles of factor analysis in personality testing.

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Definitions:

Controlling Influence

The power to govern the financial and operating policies of an entity to benefit from its activities.

Parent

In the context of business, a parent company is one that owns enough voting stock in another corporation to control its board of directors and therefore its operations and policies.

Subsidiary

A company controlled by another company, known as the parent company, through the ownership of more than half of its voting stock.

Voting Stock

Refers to shares that give the holder the right to vote on corporate matters, such as electing the board of directors.