Reasons That Firms May Find Themselves with Relatively High Costs

question 24

Multiple Choice

Reasons that firms may find themselves with relatively high costs of capital include:

• A) The firms reside in emerging countries with undeveloped capital markets.
• B) The firms are too small to easily gain access to their own national securities market.
• C) The firms are family owned and they choose not to access public markets and lose control of the firm.
• D) all of the above

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Definitions:

Puritan Settlers

Early English colonists in the American northeast who sought to purify the Church of England and established strict religious communities.

Church Membership

The state of being officially recorded or enrolled as a member of a specific church or religious congregation.

Divine Grace

In Christian theology, the free and unmerited favor of God manifested in the salvation of sinners and the bestowal of blessings, beyond human deserving.

Formal Education

Organized, structured education system provided by schools, colleges, and universities.