Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A) Global bonds combine the features of domestic, foreign, and Eurobonds, and are offered for sale in several different markets simultaneously.
• B) In a leveraged buyout (LBO), a group of private investors purchases all the equity of a public corporation.
• C) A term loan is a bank loan that lasts for a specific term.
• D) Eurobonds are international bonds that are denominated in European currency.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Investing Activities

Cash flow activities that include (a) purchasing and disposing of investments and property, plant, and equipment using cash and (b) lending money and collecting the loans.

Cash Inflow

Money or equivalent value received by a business during a specific period, including revenues from sales, financing, and investment activities.

Financing Activities

Cash flow activities that include (a) obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends.