Which of the following is a source of long-term borrowing from outside the corporation?
A) Corporate bonds
B) Sale of equity shares
C) Commercial paper
D) Line of credit
E) Inventory loans

Question

Quizplus · Accepted Answer

Corporate bonds are a source of long-term borrowing from outside the corporation, as they involve issuing debt securities that have a maturity of more than one year. Sale of equity shares, commercial paper, line of credit, and inventory loans are all sources of short-term borrowing or equity financing.

Which of the Following Is a Source of Long-Term Borrowing