The bonds issued by corporations for relatively longer term are classified as
Correct answer: C. corporate bonds
- A. long term bonds
- B. short term bonds
- C. corporate bonds
- D. Federal Reserve bonds
Explanation
Corporate bonds are debt securities issued by companies, commonly to obtain funds for several years or other long-term purposes. The classification identifies the issuer rather than a separate Federal Reserve borrowing instrument.
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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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