If Urban Outfitters borrows $25 million from a bank to finance the construction of a new store, this is an example of
A) a stock market transaction.
B) direct finance.
C) a bond market transaction.
D) indirect finance.
Answer: D
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Each point on a demand curve shows
A) the consumer surplus received from purchasing a given quantity of a product. B) the legally determined maximum price that sellers may charge for a given quantity of a product. C) the willingness of consumers to purchase a product at different prices. D) the economic surplus received from purchasing a given quantity of a product.
Restrictions on the types of food additives that breakfast cereal manufacturers can use is an example of a social regulation
a. True b. False Indicate whether the statement is true or false
If a price floor is not binding, then a. there will be a surplus in the market
b. there will be a shortage in the market. c. there will be no effect on the market price or quantity sold. d. the market will be less efficient than it would be without the price floor.
The principal-agent problem in corporations arises from:
A. the view that workers are agents who are not considered to be the principal asset of the corporations for which they work. B. the fact that the principal objective of most corporations is to make profits and not to contribute to charity. C. a perspective that corporations are agents that represent the principal source of power for government and the national economy. D. a conflict of interest between corporate executives who manage the firm and stockholders who own the firm.