Vironi Mave, a designer clothing company, wants to hire fashion designers to start a new clothing line for men. To obtain funds for the project, Vironi Mave issues several formal IOUs to sell them to its investors, with a maturation period of ten years. Which of the following sources of long-term funds is being used by Vironi Mave in the given scenario?
A) Commercial paper
B) Term loans
C) Direct investments from owners
D) Corporate bonds

Question

Quizplus · Accepted Answer

Vironi Mave is using corporate bonds as a source of long-term funds by issuing formal IOUs with a maturation period of ten years to investors.

Vironi Mave, a Designer Clothing Company, Wants to Hire Fashion