A Type of Long-Term Financing Used by Both Corporations and Government

question 197

Multiple Choice

A type of long-term financing used by both corporations and government entities is ________.

• A) common stocks
• B) bonds
• C) preferred stocks
• D) retained earnings

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Definitions:

Retirement Accounts

Financial accounts that offer tax benefits and are specifically designed to save and invest for retirement.

Lump Sum Amount

A single payment made for a particular purpose, rather than payments made in installments.

Employee Retirement Income Security Act

A federal law that sets minimum standards to ensure that voluntary, private industry pension and health plans are established and maintained in a fair and financially sound manner.

Private Retirement Plans

Financial plans that individuals or employers establish to save for retirement, which can include 401(k) plans, IRAs, and other savings models.