A primary tool of both governments and not-for-profit to acquire funds to finance long-term projects is
A) Levy of special purpose tax.
B) Have a city-wide gala.
C) Obtain line of credit on current assets.
D) Issue bonds to individuals and institutional investors.

Question

A primary tool of both governments and not-for-profit to acquire funds to finance long-term projects is 
A) Levy of special purpose tax.
B) Have a city-wide gala.
C) Obtain line of credit on current assets.
D) Issue bonds to individuals and institutional investors.

Quizplus · Accepted Answer

Issuing bonds to individuals and institutional investors is a common method used by governments and not-for-profit organizations to raise funds for long-term projects. Bonds provide a way to finance large projects by borrowing from investors and promising to repay with interest over time.

A Primary Tool of Both Governments and Not-For-Profit to Acquire