Corporations and governments use long-term debt financing called:
A) retained earnings.
B) bonds.
C) shares.
D) preferred stock.

Question

Quizplus · Accepted Answer

Bonds are a form of long-term debt financing that are commonly used by corporations and governments. Retained earnings refer to profits that a company chooses to reinvest in the business, rather than paying out as dividends to shareholders. Shares and preferred stock are forms of equity financing, which involve selling ownership in the company to investors.

Corporations and Governments Use Long-Term Debt Financing Called