Which entity issues corporate bonds?

Prepare for the Amber Book Practice Management Test with engaging multiple choice questions, detailed explanations, and study guides. Sharpen your skills and boost your confidence for the PcM exam. Get ready to ace your test!

Multiple Choice

Which entity issues corporate bonds?

Explanation:
Corporate bonds are debt securities issued by corporations to raise capital from investors. The defining point is that the issuer is a company, not an individual and not a government entity or a school. Among the options, private companies fit this role because they are the entities that borrow money by selling corporate bonds to investors. Schools and individuals do not issue corporate bonds, and government or municipal bonds come from government or municipal issuers, not private companies.

Corporate bonds are debt securities issued by corporations to raise capital from investors. The defining point is that the issuer is a company, not an individual and not a government entity or a school. Among the options, private companies fit this role because they are the entities that borrow money by selling corporate bonds to investors. Schools and individuals do not issue corporate bonds, and government or municipal bonds come from government or municipal issuers, not private companies.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy