When a Firm Decides to Expand Its Capital Stock, It

question 31

Multiple Choice

When a firm decides to expand its capital stock, it can generally:

• A) use its own funds.
• B) borrow the funds from a bank.
• C) sell bonds.
• D) do all of the above.

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Definitions:

Decision Making

The process of identifying and choosing alternatives based on the values, preferences, and beliefs of the decision-maker.

Consumers

Individuals or groups who purchase goods and services for personal use.

Employees

Individuals who work for a company or another person and receive compensation for their labor or services.

State

A politically organized body of people under a single government, often recognized as a sovereign entity.