Which One of the Following Statements Is Correct Concerning the Issuance

question 25

Multiple Choice

Which one of the following statements is correct concerning the issuance of long-term debt?

• A)A direct long-term loan has to be registered with the SEC.
• B)Direct placement debt tends to have more restrictive covenants than publicly issued debt.
• C)Distribution costs are lower for public debt than for private debt.
• D)It is easier to renegotiate public debt than private debt.
• E)Wealthy individuals tend to dominate the private debt market.

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Definitions:

Interest Group

An organization of people who share common goals and unite to influence public policy and opinion.

Federal Executive Agency

An administrative agency of the federal government of the United States, acting under the direct authority of the President or the U.S. cabinet.

National Science Foundation

A federal agency in the United States that supports fundamental research and education in all the non-medical fields of science and engineering.

Equal Employment Opportunity Commission

A U.S. federal agency responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex, national origin, age, disability, or genetic information.