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:

Military

The armed forces of a country, responsible for defending it from external threats and ensuring internal security, often involving significant personnel and technology.

Capital Stock

The total value of all durable goods available for use in production, including machinery, buildings, and equipment.

Increase

A situation where there is a rise in quantity, size, number, value, or intensity of a particular economic variable or element.

Sub-Prime Loan

A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans, usually because of poor credit histories.