Borrowing Money Is an Option to Corporations That Do Not

question 150

Essay

Borrowing money is an option to corporations that do not generate enough cash from daily operations to meet all of its financing needs. If a corporation were to sell bonds as a form of borrowing money, what disadvantages could arise?

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Definitions:

Ductus Arteriosus

Fetal vessel connecting the left pulmonary artery with the descending aorta.

Pulmonary Trunk

Large, elastic artery that carries blood from the right ventricle of the heart to the right and left pulmonary arteries.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with empathy, trust, sexual activity, and relationship-building behaviors.

ACTH

Adrenocorticotropic Hormone, a pituitary hormone that stimulates the production of cortisol from the adrenal cortex.