Final answer:
The difference between selling bonds of Goodwin Enterprises and issuing 10-year term bonds by Malone, Inc. to raise money for an expansion lies in the method of raising money, recipients of funds, and terms and conditions.
Step-by-step explanation:
The difference between selling bonds of Goodwin Enterprises and issuing 10-year term bonds by Malone, Inc. to raise money for an expansion is:
- Method of raising money: Selling bonds involves offering financial instruments to investors in exchange for capital, while issuing 10-year term bonds refers to creating and selling bonds with a specific term to maturity.
- Recipients of funds: When selling bonds, the funds go directly to the company selling the bonds (Goodwin Enterprises), whereas when issuing bonds, the funds are raised by Malone, Inc. for their expansion.
- Terms and conditions: Each bond issuance may have different terms and conditions set, such as interest rates, repayment period, and other obligations.