Bonds issued to individuals by corporations are classified as__________?
Correct answer: B. Corporate bonds
- A. Municipal bonds
- B. Corporate bonds
- C. U.S treasury bonds
- D. Mortgages
Explanation
A corporation raising funds by issuing bonds creates corporate bonds, regardless of whether individuals or institutions purchase them. Municipal and Treasury bonds are issued by government bodies.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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