Direct finance includes the sale by a corporation of stocks or bonds, but does not include borrowing money from a bank.

Name: Direct finance includes the sale by a corporation of stocks or bonds, but does not include borrowing money from a bank.
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Question

Quizplus · Accepted Answer

Direct finance involves raising funds through the sale of securities in capital markets, such as stocks or bonds. It does not involve borrowing money from banks or other financial intermediaries. Therefore, the statement is true.

Direct Finance Includes the Sale by a Corporation of Stocks