ch 9

A corporation that wishes to borrow from the general public rather than a bank will issue Multiple choice question.

bonds

Periodic payments on installment notes typically include

a portion that reflects interest. a portion that reduces the outstanding loan balance.

A contract in which an owner provides a user the right to use an asset in return for periodic cash payments over a period of time is called a(n)

lease

Financing with _________ requires borrowing, whereas financing with_______ requires issuing shares of stock.

liability, equity

In a private placement of bonds, bonds may be sold to

a single large investor.

The two types of financing are

equity financing. debt financing.

Loans requiring periodic payments of interest and principle are referred to as ___________ notes

installment