The Basic Factors That Determine How a Firm Is Financed

question 34

True/False

The basic factors that determine how a firm is financed are restricted to the firm's past economic performance,the nature of its assets,and the personal preferences of owner(s)with respect to the marketing mix.

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Definitions:

Deadweight Losses

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Quotas

Predetermined limits set on the quantity of goods that can be produced, imported, or exported.

Market Outcomes

The results of all the buying and selling activities in a particular market.

Price Floor

A government-imposed minimum price for a good or service, aimed at preventing prices from falling too low.