Chunky Chicken,Inc

question 16

Multiple Choice

Chunky Chicken,Inc.announced yesterday that it plans to issue $100 million in debenture bonds to fund the expansion of its fast food chain of restaurants.In financial terms,this means:

• A)The corporation will borrow $100 million worth of long-term financing.The bond issue will not carry any collateral.
• B)The corporation will issue $100 million worth of equity financing.The bond issue will be backed by the property and buildings purchased with the funds.
• C)The corporation will borrow $100 million worth of long-term financing.The issue will be backed by the property and buildings purchased with the funds.
• D)The corporation will issue $100 million worth of interest free bonds.Financiers will be paid from the revenues created by the individual franchises.

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Definitions:

Corporate Financial Accounting

The practice of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.

Organizational Psychologists

Professionals who apply psychological principles and research methods to improve the work environment, employee satisfaction, and productivity.

Employee Engagement

The degree to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work.

Work Environments

The physical and social settings in which people perform their jobs, which can significantly affect their performance and well-being.