Gratinut Entos, an automobile company, wants to launch a new model of bike that would appeal to young adults. The company issues its own formal IOUs to fund the project. Which of the following sources of long-term funds is being used by Gratinut Entos in the given scenario?
A) Term loans
B) Commercial paper
C) Corporate bonds
D) Direct investments from owners

Question

Quizplus · Accepted Answer

Corporate bonds are formal IOUs issued by companies to raise funds, which is what Gratinut Entos is doing to fund their new bike project.

Gratinut Entos, an Automobile Company, Wants to Launch a New