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:

Power

The capacity or ability of individuals or organizations to direct or influence the behavior of others or the course of events.

Bureaucratic Control

The influence of behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.

Behaviour

The behavior of a person or collective when responding to outside or inside triggers.

Day-To-Day Supervision

The ongoing, immediate oversight of activities and tasks, typically aimed at ensuring they are accomplished efficiently and correctly.