Of the Following Sources of External Finance for American Nonfinancial

question 6

Multiple Choice

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

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

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Definitions:

Topping Out

A construction milestone where the last beam is placed atop a structure during its erection.

Reward System

A mechanism for providing incentives or compensation in recognition of achievements, behavior, or performance.

Profit-Sharing Programs

Profit-sharing programs are incentive schemes wherein employees receive a share of the company's profits, usually based on the company's earnings over a specified period.

Flexible-Benefit Plans

Employee benefit programs that allow individuals to choose from a variety of pre-tax benefits according to their personal needs and situations.