Question

When a large, well-known corporation wishes to borrow directly from the public, it can ________.

1) sell bonds
2) sell shares of stock
3) go to a bank for a loan
4) all of the above are correct

Answer 1

A large, well-known corporation can borrow directly from the public by selling bonds, selling shares of stock, or going to a bank for a loan.

Step-by-step explanation:

When a large, well-known corporation wishes to borrow directly from the public, it can do so by selling bonds, selling shares of stock, or by going to a bank for a loan. These are all valid methods for a corporation to access financial capital. Selling bonds involves issuing debt securities to investors, while selling shares of stock involves offering ownership stakes in the company to the public. Going to a bank for a loan allows the corporation to borrow money directly from the bank.