With Regard to External Sources of Financing for Nonfinancial Businesses

question 103

Multiple Choice

With regard to external sources of financing for nonfinancial businesses in the United States,which of the following are accurate statements?

• A) Marketable securities account for a larger share of external business financing in the United States than in most other countries.
• B) Since 1970, less than 5% of newly issued corporate bonds and commercial paper have been sold directly to American households.
• C) The stock market accounted for the largest share of the financing of American businesses in the 1970-2000 period.
• D) All of the above.
• E) Only A and B of the above.

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Definitions:

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of what strategies other players select.

Constant-Sum Game

A situation in game theory in which the total gains and losses among participants are always balanced, implying that one player's gain is another's loss.

Simultaneous-Move

Refers to games or decision scenarios where all players make their moves at the same time, without knowledge of the others' choices.

Loss

Loss refers to the situation in which the total costs exceed the total revenues of a business or transaction, resulting in a negative profit.