Question

Three important forms of financing long-term (capital) expenditures are:

O a. Accounts payable, notes payable, and cimmercial paper
O b.trade credit, bank loans, and commercial paper
O c. trade credit, accounts payable, and bank loans
O d. term loans, mortgage loans, and bonds

Answer 1

O d. term loans, mortgage loans, and bonds

Step-by-step explanation:

Term loans are credit facilities where the lender and borrower agree on the loan amount and a repayment schedule. It involves a large sum of money to be repaid over a long period making it ideal for acquiring capital.

Mortgage loans are long term debts used to finance the purchase of properties. It is ideal for expensive capital due to the lengthy time it takes to repay.

Bonds are long-term debt securities issued by corporations to finance long term projects.