The Financing Option That Has the Lowest Risk to a Company

question 52

Multiple Choice

The financing option that has the lowest risk to a company is financing by:

• A)retained earnings.
• B)issuing stock.
• C)issuing bonds payable.
• D)issuing notes payable.

Know the appropriate time and methods for distributing meeting agendas.

Comprehend the significance of using technology wisely in meetings.

Grasp the utility and application of parliamentary procedure in meetings.

Acknowledge the importance of courteous communication during meetings, such as informing about note-taking on devices.

---

Definitions:

Preferential Payment

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another.

Voluntary Petition

A legal document filed by an individual or entity declaring their intent to undergo bankruptcy proceedings under their own accord.

Bankruptcy Relief

Legal measures available to individuals or corporations that cannot meet their financial obligations, allowing for reorganization or discharge of debts.

Preferential Payment

A financial transaction that gives prior payment to one creditor over others before a debtor's bankruptcy.