The company issuing corporate bonds is utilizing c) Debt financing.

Here's why:

1. Corporate bonds are a form of borrowing. When a company issues a bond, it is essentially taking a loan from the bondholder (the investor) which it promises to pay back with interest. This is why it's considered a form of debt.

2. Equity financing (option a) would involve the company selling shares of its stock to raise money. This is not the case here.

3. Short-term financing (option b) could involve a variety of methods, but typically refers to loans or credit with a repayment term of less than a year. Corporate bonds usually have longer terms.

4. Internal financing (option d) refers to the generation of funds from within the company, such as through profits or the sale of assets. Issuing bonds involves obtaining funds from external sources (the bondholders).

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The company issuing corporate bonds is utilizing c) Debt financing.

Here's why:

1. Corporate bonds are a form of borrowing. When a company issues a bond, it is essentially taking a loan from the bondholder (the investor) which it promises to pay back with interest. This is why it's considered a form of debt.

2. Equity financing (option a) would involve the company selling shares of its stock to raise money. This is not the case here.

3. Short-term financing (option b) could involve a variety of methods, but typically refers to loans or credit with a repayment term of less than a year. Corporate bonds usually have longer terms.

4. Internal financing (option d) refers to the generation of funds from within the company, such as through profits or the sale of assets. Issuing bonds involves obtaining funds from external sources (the bondholders).

Knowee AI · Accepted Answer

The company issuing corporate bonds is utilizing c) Debt financing.

Here's why:

1. Corporate bonds are a form of borrowing. When a company issues a bond, it is essentially taking a loan from the bondholder (the investor) which it promises to pay back with interest. This is why it's considered a form of debt.

2. Equity financing (option a) would involve the company selling shares of its stock to raise money. This is not the case here.

3. Short-term financing (option b) could involve a variety of methods, but typically refers to loans or credit with a repayment term of less than a year. Corporate bonds usually have longer terms.

4. Internal financing (option d) refers to the generation of funds from within the company, such as through profits or the sale of assets. Issuing bonds involves obtaining funds from external sources (the bondholders).

A company issuing corporate bonds is utilizing which source of finance?Answer areaa) Equity financingd) Internal financingb) Short-term financingc) Debt financing

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