Consider the Diagram Below

question 3

Multiple Choice

Consider the diagram below. What type of margin is this?

• A) Passive, because the deep sea fans indicate tectonic activity.
• B) Passive, because the lack of trenches and subducting oceanic crust indicate tectonic activity.
• C) Active, because the deep sea fans indicate tectonic activity.
• D) Active, because the lack of trenches and subducting oceanic crust indicate tectonic activity.

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Definitions:

Long-term Financing

Funding obtained for a time frame exceeding one year, used for acquiring assets, structuring mergers or acquisitions, and supporting expansive business activity.

Flotation Costs

The complete expenses a company faces while issuing new securities, such as fees for underwriting, legal matters, and registration.

Cash Flows

The total amount of money being transferred into and out of a business, particularly considered when assessing its liquidity.

Cash Budget

An estimation of the cash inflows and outflows for a business or individual for a specific period, used for managing liquidity and financial planning.