When a Company Needs Capital to Purchase Inventory, Expand a Plant

question 180

Multiple Choice

When a company needs capital to purchase inventory, expand a plant, make major investments, acquire another firm, or pursue other business goals, it may sell a bond or stock issue to the investing public. This is done in which market?

• A) primary market
• B) secondary market
• C) government market
• D) supermarket

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Definitions:

Wage Rate

The amount of money paid per unit of time (hour, day, etc.) to compensate employees for their labor.

Gardenburger Makers

Companies or entities involved in the production of Gardenburger, a brand of meatless burgers often made from vegetables, grains, and legumes.

Increase in Supply

A shift to the right of the supply curve, indicating a higher quantity supplied at each price.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.