Which Three of the Following Are Motives Explaining the Manifestation

question 21

Multiple Choice

Which three of the following are motives explaining the manifestation of a pecking order in financing decisions?

• A) Ordinary shares are more expensive to issue than issuing debt capital and using retained earnings.
• B) The issue of equity is perceived as an act of desperation.
• C) The firm does not have any more assets unpledged to use as collateral for loans.
• D) Managers follow the line of least resistance with respect to communications and approval of finance promoters.

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Definitions:

Cold Canvassing

A sales technique where individuals or businesses are approached without prior contact or relationship, often used to solicit new customers or gather information.

Personal Selling Process

describes the sequence of steps salespeople follow to persuade potential customers to purchase a product or service.

Cultural Setting

The environment and context influenced by societal norms, values, practices, and beliefs in which individuals or groups operate.

Stimulus-Response Selling

A sales technique that focuses on triggering a positive customer response through specific stimuli or cues.