Which entity issues corporate bonds?

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Study for the Amber Book Practice Management (PcM) Test. Review with flashcards and multiple choice questions, each with hints and detailed explanations. Prepare thoroughly for your exam today!

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.

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