Asked by Priya Puppala on Jun 27, 2024
Verified
Which statement is false?
A) Savings may be invested directly in a corporation,or it may be invested indirectly through a bank or other financial intermediary.
B) Large bank loans are often made,not by individual banks,but by loan syndicates of dozens of banks.
C) Corporations raise a substantial portion of their investment funds internally.
D) Some partnerships raise funds by selling stock.
Financial Intermediary
An institution that facilitates the channeling of funds between lenders and borrowers, such as banks, investment funds, and insurance companies.
Loan Syndicates
Groups of banks or financial institutions that come together to provide a large loan to a single borrower, spreading the risk among them.
Partnerships
A business structure where two or more individuals share ownership, profits, and liabilities of the business.
- Separate true from untrue propositions concerning economic ideas and corporate configurations.
Verified Answer
SK
Segana KinyeJul 02, 2024
Final Answer :
D
Explanation :
Partnerships do not issue stock as they are not corporations. Only corporations can issue and sell stock to raise funds.
Learning Objectives
- Separate true from untrue propositions concerning economic ideas and corporate configurations.