That Only Large,well-Established Corporations Have Access to Securities Markets

Multiple Choice

That only large,well-established corporations have access to securities markets

A) explains why indirect finance is such an important source of external funds for businesses.
B) can be explained by the problem of moral hazard.
C) can be explained by government regulations that prohibit small firms from acquiring funds in securities markets.
D) explains why newer and smaller corporations rely so heavily on the new issues market for funds.