If Companies Can Rely on Stock Markets to Obtain Funds

question 77

Multiple Choice

If companies can rely on stock markets to obtain funds, they will have to rely more heavily on the ____ market to raise long-term funds.

• A) derivative
• B) long-term credit
• C) money
• D) foreign exchange

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Definitions:

Public Ownership

Organization owned and operated by a unit or agency of government.

Employee Ownership

Business ownership in which workers own shares of stock in the company that employs them.

Subchapter S Corporation

A form of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity, thus avoiding double taxation.

Shareholders

Individuals or entities that own one or more shares of stock in a company, and therefore have a financial interest in its performance.