When a corporation borrows money from a bank in exchange for a contract to repay it on a schedule, the corporation is:

Question

Quizplus · Accepted Answer

When a corporation borrows money from a bank and agrees to repay it on a schedule, it is taking out a loan. Issuing bonds involves selling debt securities to multiple investors, while issuing stocks involves selling ownership shares in the corporation. Liquidating a bank deposit involves withdrawing money from a deposit account, which is not the same as borrowing money from a bank.

When a Corporation Borrows Money from a Bank in Exchange