Which of the following is an advantage of issuing corporate bonds over obtaining a long-term loan?
a. Corporations usually have a shorter repayment period for issued corporate bonds than for a long-term loan.
b. All businesses can issue corporate bonds, while only a few large corporations can obtain long-term loans.
c. A corporate bond can always be changed into shares of the corporation's common stock.
d. Corporations can borrow a lot of money from a lot of different bondholders and raise larger amounts of money than could be borrowed from one lender.
e. Corporations do not have to pay any interest when issuing bonds in a healthy economy.
d. Corporations can borrow a lot of money from a lot of different bondholders and raise larger amounts of money than could be borrowed from one lender.
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Indicate whether this statement is true or false.
Which of the following is characteristic of a global industry?
A) A small number of firms compete head-on in multiple markets. B) Marketing is designed on a country-by-country basis. C) Numerous firms compete within the industry worldwide. D) Planning to meet local needs is critical.