Asked by Anika Desai on May 28, 2024
Verified
The corporation can also borrow funds, thereby accumulating
A) shares.
B) debt.
C) bonds.
D) assets.
E) trustees.
Borrow Funds
Refers to obtaining money from another party, usually a financial institution, under the agreement that the money will be repaid, typically with interest.
Accumulating Debt
The process of increasing debt through borrowing or the accumulation of interest on existing loans.
Corporation
A business organization that is a separate legal entity from its owners, the shareholders.
- Recognize the procedures and consequences of corporate debt acquisition, encompassing the functions of securities and bondholders.
Verified Answer
CT
Caitlyn TobinJun 02, 2024
Final Answer :
B
Explanation :
When a corporation borrows funds, it accumulates debt because it is obligated to repay the borrowed amount along with any agreed-upon interest.
Learning Objectives
- Recognize the procedures and consequences of corporate debt acquisition, encompassing the functions of securities and bondholders.
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