Which of the following statements concerning external sources of financing for nonfinancial businesses in Canada is true?
A) Stocks are a far more important source of finance than are bonds.
B) Stocks and bonds, combined, supply less than one-half of the external funds.
C) Financial intermediaries are the least important source of external funds for businesses.
D) Since 1970, more than half of the new issues of stock have been sold to Canadian households.

Question

Quizplus · Accepted Answer

According to the text, "stocks and bonds together supplied less than one-half of the external funds" for nonfinancial businesses in Canada. Therefore, statement B is true. The other statements are either incorrect or not mentioned in the text.

Which of the Following Statements Concerning External Sources of Financing