The two primary sources of long-term debt funds are
A) lines of credit and revolving credit agreements.
B) common stock and preferred stock.
C) trade credit and commercial paper.
D) commercial paper and bank loans.
E) long-term loans and the sale of bonds.

Question

Quizplus · Accepted Answer

Long-term loans and the sale of bonds are both forms of long-term debt financing. Long-term loans are typically secured by collateral and have a fixed repayment schedule. Bonds, on the other hand, are issued to investors and have a fixed interest rate as well as a specified repayment date. These two sources of financing are often used by companies to fund large projects or investments that require significant capital over an extended period of time.

The Two Primary Sources of Long-Term Debt Funds Are