Which of the Following Is an Example of Indirect Financing

question 68

Multiple Choice

Which of the following is an example of indirect financing?

• A)corporate bonds
• B)corporate stocks
• C)business bank loans
• D)U.S.government bonds

---

Definitions:

Unit Cost

The cost incurred to produce, store, and sell one unit of a product or service.

Bertrand Model

An economic model that describes interactions between firms that compete by setting prices, assuming products are perfect substitutes.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service, often considered for decision-making in production and pricing strategies.

Constant Returns

A situation in which increasing inputs in production results in a proportional increase in output.