Which Statement Is True

question 55

Multiple Choice

Which statement is true?

• A)Firms often pay higher interest rates on term loans than on public issues of debt.
• B)The only difference between a term loan and a private placement is the size of the issue.
• C)A prospectus is required for equity issues but not for debt issues.
• D)The flotation costs of issuing debt tend to be more expensive than for issuing equity.
• E)Direct long-term loans must be registered with the SEC.

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Definitions:

Systematic Change

Planned and structured modifications made in a system to improve processes, technologies, or structures.

Work Redesign

This refers to the process of altering job roles, workflows, or organizational structures to improve efficiency, employee satisfaction, and adaptability.

Work Process

The sequence of activities or tasks that are conducted to achieve a specific outcome or product in an organizational setting.

Workforce Reduction

Strategies employed by organizations to decrease the number of employees, typically through layoffs, voluntary retirement, or attrition, to reduce costs or adjust to structural changes.