A popular form of debt financing with large companies,a sort of corporate "IOU," which is becoming more accessible to a growing number of small companies is:
A)stockbroker-based loans.
B)bonds.
C)commercial bank loans.
D)SBICs.

Question

Quizplus · Accepted Answer

Bonds are a popular form of debt financing for large companies and are becoming more accessible to small companies. Bonds are essentially corporate IOUs where the issuer (the company) borrows money from investors and agrees to pay back the principal plus interest over a certain period of time. Bonds can be bought and sold on public exchanges and can provide a steady stream of income for investors.

A Popular Form of Debt Financing with Large Companies,a Sort