Purchasing bonds for the expansion of a software firm would be considered
A)direct finance.
B)indirect finance.
C)bond refunding.
D)bond discounting.

Question

Quizplus · Accepted Answer

Purchasing bonds directly from a software firm would be an example of direct finance, where funds are raised directly from investors rather than through a financial intermediary. Indirect finance involves raising funds through a financial intermediary, such as a bank or mutual fund. Bond refunding involves redeeming existing bonds with new bonds, typically at a lower interest rate. Bond discounting involves selling bonds at a lower price than their face value, typically due to a lack of demand for the bonds.

Purchasing Bonds for the Expansion of a Software Firm Would