When a large,well-known corporation wishes to borrow directly from the public,it can
A)sell bonds.
B)sell shares of stock.
C)go to a bank for a loan.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Selling bonds is a common way for large corporations to borrow directly from the public. Bondholders lend money to the corporation in exchange for interest payments and the return of their principal investment at a future date. Selling shares of stock involves issuing equity, which gives the shareholders ownership in the corporation and a share of its profits but does not provide a direct loan to the corporation. Going to a bank for a loan is another option, but it would not involve borrowing directly from the public.

When a Large,well-Known Corporation Wishes to Borrow Directly from the Public,it