Map o Sapling Learning mecmilan learning Identify whether each scenario is a cha
ID: 1116390 • Letter: M
Question
Map o Sapling Learning mecmilan learning Identify whether each scenario is a characteristic or an example of a stock or bond by dragging and dropping each item into the correct bin. Stocks Bonds Johnson & Johnson wants to build a new factory but does not have the cash on hand to pay for it. It chooses to finance its new factory through debt financing. Ivan owns a financial asset that he purchased from his local govemment and it matures in five years Netflix wants to expand its current operations to a new country. It chooses to finance it expansion through equity financing Catherine purchased a financial asset that gives her partial ownership of a company Previous Give Up & View Solution O Check Answer ) Next Exit HintExplanation / Answer
Ans:
Stocks are securities that gives stockholders a share of ownership in a company. These stocks also are called equity of the company.
Bonds are debt instruments which are issued by the borrowers to raise money which is a loan to be repaid together with interest.Holder of bonds does not receive any ownership right in the company.
Netfix wants to expand its current operations to a new country. It chooses to finance its expansion through equity financing.
Catherine purchased a financial asset that gives her partial ownership of a company.
Ivan owns a financial asset that he purchased from his local government and it matures in five years.
Johnson & Johnson wants to build a new factory but does not have cash on hand to pay for it.It chooses to finance its new factory through debt financing.
Stocks BondsNetfix wants to expand its current operations to a new country. It chooses to finance its expansion through equity financing.
Catherine purchased a financial asset that gives her partial ownership of a company.
Ivan owns a financial asset that he purchased from his local government and it matures in five years.
Johnson & Johnson wants to build a new factory but does not have cash on hand to pay for it.It chooses to finance its new factory through debt financing.