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Your firm issues 20-year bonds. This type of financing would be most appropriate for which of...

Your firm issues 20-year bonds. This type of financing would be most appropriate for which of the following activities?

a. the support of accounts receivable

b. the construction of a new warehouse

c. the support of accounts payable

d. the financing of inventory

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Answer #1

Answer : "b. the construction of a new warehouse"

=> The issuing of 20-year bonds is a long term financing, so this type of financing is appropriate for Fixed Assets like Factory, warehouse, etc., which will have a long-term benefits.

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