A company can pay for its expansion in all the following ways except（）
A. by using the earnings generated from its sale of obsolete equipment
B. by persuading the director’s mother to make a personal loan to the company
C. by purchasing bonds in the secondary market
D. by selling stock certificates for a new subsidiary
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An example of a firm’s financing decision would be（）
A. acquiring a competitive firm
B. determining how much to pay for a specific asset
C. issuing 10-year versus 20-year bonds
D. deciding whether or not to increase the price of its products
A board of directors is elected as a representative of the corporation’s（）
A. top management
B. stakeholders
C. shareholders
D. customers
One common reason for partnerships to convert to a corporate form of organization is that the partnership（）
A. faces rapidly growing financing requirements
B. wishes to avoid double taxation of profits
C. has issued all of its allotted shares
D. agreement expires after ten 10 years
Short-term financing decisions commonly occur in the（）
A. primary markets
B. secondary markets
C. capital markets
D. money markets
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