{ "quiz": { "id": 1155849, "pass_fail": false, "show_explanation": false, "passing_score": null, "question_ids": [ 6643784, 6643785, 6643786, 6643787 ] }, "choices": [ { "id": 23113239, "text": "

Interest payments are tax-deductible.

", "credited": "NjZ0cnVlNzM=", "question_id": 6643784, "position": 0 }, { "id": 23113240, "text": "

The borrower can grant collateral in the form of security.

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Borrowers are likely to benefit from the expertise of the finance provider.

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You don't have to give up an ownership stake in the company.

", "credited": "NjV0cnVlNjA=", "question_id": 6643784, "position": 3 }, { "id": 23113243, "text": "

Where a company issues debt instruments to investors through the debt capital markets, in exchange for cash.

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Where a company lists its shares on a stock exchange for the first time.

", "credited": "ODJmYWxzZTY=", "question_id": 6643785, "position": 1 }, { "id": 23113245, "text": "

The process under which an investment bank underwrites the sale of debt or equity instruments.

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The term used to describe a company selling shares to private investors.

", "credited": "NTRmYWxzZTI5", "question_id": 6643786, "position": 0 }, { "id": 23113247, "text": "

The term used to describe each instance in which a company sells its shares through a stock exchange.

", "credited": "OTRmYWxzZTM0", "question_id": 6643786, "position": 1 }, { "id": 23113248, "text": "

The term used to describe a company listing its shares on a stock exchange for the first time.

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An initial private offering.

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The decrease in value of intangible assets over time.

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The decrease in value of tangible (i.e. physical) assets over time.

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The decrease in value of a company over time.

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The decrease in the outstanding amount of a loan over time.

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Which are some of the key benefits of debt finance for a borrower?

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Security isn't a "benefit" for borrowers. If repayments are not met, security may entitle lenders to seize and sell any secured assets in order to retrieve their money. In addition, lenders don't tend to offer commercial help to borrowers. This is something that private investors are more likely to contribute.

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Which of the below best describes a bond issue?

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A bond issue involves a company (the “issuer”) issuing (i.e. selling) debt instruments called bonds to investors through the debt capital markets, in exchange for cash. Bonds entitle investors to regular interest payments (these are known as “coupon” payments) over a given period, at the end of which the bonds “mature” and each investor becomes entitled to receive back their initial investment (known as the “principal” amount) in full. In this sense, bonds are a little like IOUs.

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What is an IPO?

", "text_explanation": "

"IPO" stands for "initial public offering", which is where a company lists its shares on a stock exchange for the first time (hence the phrase initial public offering) in order to sell those shares through the equity capital markets. Listing through a stock exchange also facilitates the subsequent trading of those shares.

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Which of these best describes the meaning of "depreciation"?

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