A Private Placement Is Most Apt to Involve

question 2

Multiple Choice

A private placement is most apt to involve:

• A)a large number of private investors.
• B)only foreign investors.
• C)a life-insurance company.
• D)several private securities dealers.
• E)the U.S.Treasury department.

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Definitions:

Borrowing Company

A company that takes out a loan or issues debt securities to finance its operations or projects.

Aging of Accounts Receivable

The process of categorizing accounts receivable by their due dates to estimate the amount of bad debts.

Estimated Net Realizable Value

The anticipated fair value of an asset in terms of the amount for which it could be sold, minus the estimated costs of sale or disposal.

Percentage of Net Sales

A financial ratio that represents certain expenses, liabilities, or profits as a percentage of the net sales, used to analyze the financial health and performance of a business.