Which of the following represents the primary source of funds for Japanese businesses?
A)Government grants
B)Bank credit and cross-corporate ownership
C)Corporate bonds
D)Outside equity financing

Question

Quizplus · Accepted Answer

Bank credit and cross-corporate ownership are the primary source of funds for Japanese businesses. Japanese companies have strong relationships with banks, and banks often hold shares in the companies they finance, creating cross-corporate ownership. This system is unique to Japan and is known as "keiretsu." Government grants, corporate bonds, and outside equity financing are not as commonly used as bank credit and keiretsu relationships.

Which of the Following Represents the Primary Source of Funds