## 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…

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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

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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.

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