## Financial Literacy Lesson: Bonds and Their Issuers### Lesson OverviewThis lesson is part of the "Economics with Financial Literacy Part 2" course, focusing on Competency-Based Learning. This section, DCB.SS013.B., explores different types of entities that might issue bonds.### ContextBonds are a common method for raising capital in various sectors. However, not all entities are equally likely to issue bonds.### Question*Which of the following is not likely to have a bond issue?*1. startup company2. government3. public service4. utility### Explanation- **Startup Company**: Startups typically rely on venture capital, angel investors, or loans rather than bond issues, primarily because they may not yet have the stability or credit rating to issue bonds effectively.- **Government**: Governments frequently issue bonds to raise funds for projects, infrastructure, and other expenses.- **Public Service**: Public service organizations, including non-profits, might issue bonds, particularly if they're large or need to fund substantial projects.- **Utility**: Utility companies, especially those that are investor-owned, often issue bonds to finance large infrastructure projects and expansion efforts.### ConclusionUnderstanding which entities are likely to issue bonds is a crucial aspect of financial literacy. In this context, a startup company is the least likely option to issue bonds compared to government, public service, and utility companies.### Graphs and DiagramsNo graphs or diagrams are present in this section of the lesson.

Bonds is an borrowing instrument through which companies, governments, municipalities raise money by…

Answered: Which of the following is not likely to…

Business

Economics

Which of the following is not likely to have a bond issue? o startup company government O public service utility

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What is one way in which an individual citizen can influence the government?

A: Individual citizens can able to influence government through various ways.

Q: A corporate bond: O a. Both of the above O b. is an ownership interest in the corporation O c. is a…

A: A corporate bond is a debt security issued by a corporation and sold to investors. The backing for…

Q: What is an external interest rate?

A: External interest rate is a rate which central bank of a country made it mandatory for all banks to…

Q: What constitutes the basic financial statements for a government?

A: Financial statements helps government to know the financial position of the business and the balance…

Q: Why do government entities impose taxes and how is the type of taxation chosen (e.g., excise v.…

A: The process of levying a financial charge, known as a tax, on individuals, businesses, and other…

Q: PLS HELP ASAP ON BOTH

A: 1) The Index Exchange Traded Fund (ETF) is most likely to be passively managed. This is because ETFs…

Q: How corporations are designated changes depending on where the corporation is doing business? When a…

A: A company is an independent legal body from its shareholders. Numerous of the same legal rights and…

Q: Explain the concept of restrictive covenants. When and why do they apply?

A: Restrictive covenants: When some property is bought and sold between parties then there is some…

Q: Explain the concept of market failure and its implications for both governments and businesse

A: Market Failure(MF) is the inefficient distribution of services and goods in the free market. The…

Q: After the pandemic, if the city of Pasadena increased sales tax by 1% to help pay for some of the…

A: After the pandemic, many cities and regions have been exploring various fiscal measures to support…

Q: Which of the following is not a canon of taxation? Pick a,b,c, or d a. Equity b. General…

A: Canons of taxation are defined as the various administrative features of taxation. Taxation refers…

Q: Most businesses pay corporate income tax to the federal government based on the company's corporate…

A: The corporate income tax is paid based on the company's operating earnings.

Q: Suppose an individual decreases their consumption in a year, resulting in more saving for and…

A: The consumption depends on the income of a person. Therefore, if the income rises then consumption…

Q: How ला iem गनीन एटिनिण गुपब तष०ण peape emplyed and Pere are 20 millien peepfe net in te laben Berce…

Q: Why does a corporation's state income tax cost depend on its marginal income tax rate for federal…

A: Income tax: It is an assessment paid by people or elements relying upon the degree of income or…

Q: QUESTION 12 For the US govemment to provide services, t collects reverue trom 1A nly indida in the…

A: Ans 12 The US government collects revenue from Both households and businesses in various forms of…

Q: Willy owns a small chocolate factory, located close to a river that occasion- ally floods in the…

A: Given , Probability of flood = 0.1 Value of Factory = 50000 Probability of no flood = 1 - 0.1 =…

Q: Tax System A Marginal Tax Rate Tax Sy Income Range 0- $20,000 $20,001-$40,000 $40,001 - $80,000…

A: Average tax rate is the share of income a tax payer pay in taxes. A taxpayer's marginal tax rate is…

Q: Why is CSR play a crucial role in attracting customers ?

A: Corporate social responsibility (CSR) is a business structure in which for-profit companies seek a…

Q: What are the four roles of government? Give an example of each role.

A: The of government has multi dimensional roles which can be summarized as taking action in interest…

Q: 4. Why do government entities impose taxes and how is the type of taxation chosen (e.g., excise v.…

A: Governments impose taxes for various reasons, including raising revenue to fund government…

Q: TE 1. Federalists believed in a smal federa government

A: When talking about federalists, they are the people in the United States who beleives in the…

Q: A B 3 4 5 6 7 D E F G H Bret's Accounting & Tax Services is a small well-known accounting firm in…

A: Price Elasticity and Demand:Estimate how many returns will be completed if the firm charges $65 per…

Q: What is an appropriate role for city government in creating affordable housing in cities like…

A: The most immediate way the state government could assuage lodging cost troubles on low-pay families…

Q: 1. What is Public Finance, and what are the key questions that the field addresses?

A: Government revenue refers to the income generated by the government through various sources such as…

Q: Give typing answer with explanation and conclusion Briefly contrast a private company and a public…

A: The incorporation of economic ideas and theories into the investigation and management of assets in…

Q: What solution are economists more likely to advocate for instead of rent control?

A: Rent control is a price ceiling policy which government uses to limit the rent charged on housing to…

Q: What are the implications of a municipality overspending their allocated budget

A: The municipality is the local government body of a small area of the country. This area can be…

Q: If a government agency doesn’t collect enough money in taxes to pay for the programs it created.…

A: In an economy, government makes expenditure on social activities like developing infrastructure,…

Q: Economics government to tax private forestlands with a constant proportion and depending on the…

A: TAX:Tax is the amount of income that the people of a country pay to the government of the given…

Q: What is the difference between progressive and regressive tax system?

A: Answer: In the progressive tax system the level of taxes rises with the increase in income, the…

Q: P 23 19 4 20 26 What's the amount of the tax? 4 15 19 cannot be determined S+ tax S Q

A: The demand curve is the graphical representation of the quantity demanded by consumers at different…

Q: Why would a public company not be the right form of ownership for their business

A: Public company is controlled by the government.

Q: hat are the supply side challenges of energy?

A: Energy efficiency simply means using less energy to do the same work - in other words, minimising…

Q: 1. In the circular flow of financial activity surplus budget units are net lenders of funds while…

A: The circular flow model illustrates how money circulates in an infinite cycle from producers to…

Q: A progressive tax system is one in which the average tax rate increases as income increases. Don't…

A: Taxation is the cycle by which a government or other taxing power powers a financial charge or duty…

Q: In the case of a pay-as-you-go social security system, how would the tax burden matter

A: "To do for a group of people what they need but cannot do at all or cannot do so well for themselves…

Q: what is the difference between horizontal and vertical tax equity?

A: Tax equity is a principle of taxation that seeks to ensure fairness and impartiality in the…

Q: Hello I need help with introducing a per unit tax into this diagram? Also How do I do this,label the…

Q: How does public sector spending effect the economy and the businesses within?

A: Public sector spending is undertaken by the government of the country. This involves developing…

Question

## Financial Literacy Lesson: Bonds and Their Issuers

### Lesson Overview
This lesson is part of the "Economics with Financial Literacy Part 2" course, focusing on Competency-Based Learning. This section, DCB.SS013.B., explores different types of entities that might issue bonds.

### Context
Bonds are a common method for raising capital in various sectors. However, not all entities are equally likely to issue bonds.

### Question
*Which of the following is not likely to have a bond issue?*

1. startup company
2. government
3. public service
4. utility

### Explanation
- **Startup Company**: Startups typically rely on venture capital, angel investors, or loans rather than bond issues, primarily because they may not yet have the stability or credit rating to issue bonds effectively.
- **Government**: Governments frequently issue bonds to raise funds for projects, infrastructure, and other expenses.
- **Public Service**: Public service organizations, including non-profits, might issue bonds, particularly if they're large or need to fund substantial projects.
- **Utility**: Utility companies, especially those that are investor-owned, often issue bonds to finance large infrastructure projects and expansion efforts.

### Conclusion
Understanding which entities are likely to issue bonds is a crucial aspect of financial literacy. In this context, a startup company is the least likely option to issue bonds compared to government, public service, and utility companies.

### Graphs and Diagrams
No graphs or diagrams are present in this section of the lesson.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Meaning

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Predict what would happen to the risk premiums ofmunicipal bonds if the federal government guaranteestoday that it will pay creditors if municipal governments default on their payments. Do you think that itwill then make sense for municipal bonds to be exemptfrom income taxes?
If the corporate income tax induces businesses toreduce their capital investment, thena. the tax does not have any deadweightloss.b. corporate shareholders benefit fromthe tax.c. workers bear some of the burden ofthe tax.d. the tax achieves the goal of verticalequity
Do you think that a uniform global corporate tax rate is a good idea? Why or why not? Who will it benefit? Who might it hurt?
11
How is the concept of 'market failure' relevant to government funding?
Explain what asylm seeker id
Is it inevitable that government must become involved in supporting investments in new technology? Why or why not?
What is the concept of horizontal equity and why is ithard to apply?
Pleas help with parts D and E
State two main important objective of government budget??
explain how government impacts on business
Is it inevitable that government must become involved in supporting investments in new technology?