Which of the Following Is an Advantage of Private Debt

question 91

Multiple Choice

Which of the following is an advantage of private debt over public debt?

• A)It is liquid.
• B)It does not need to be registered with the securities commission.
• C)It does not require interest and principal payments made upon it.
• D)It dilutes the ownership of the firm.
• E)It is sold to a wider group of investors.

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Definitions:

Fertilizer

A substance added to soil to enhance its fertility by supplying essential nutrients to plants.

Bushels

A unit of volume commonly used in agriculture, particularly in the United States, for measuring quantities of grain, fruits, and other dry commodities.

Price

The amount of currency needed to buy a good or service.

Profit

The financial gain realized when the amount of revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.