A Firm Has Funds and Needs to Decide What to Do

question 45

Multiple Choice

A firm has funds and needs to decide what to do with them. What are the two most likely options that they would consider?

• A) Issue bonds
• B) Invite shareholders to make further investment in the firm
• C) Invest with the firm
• D) Hand money back to shareholders

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Definitions:

Periodic Tenancy

Automatically renewing tenancy with no specific termination date.

Term Lease

A lease agreement that is set for a specified duration of time, after which it may be renewed or terminated.

Exclusive Possession

A legal term referring to the right of a party to use and control property to the exclusion of others.

Lease Termination

The ending of a lease agreement either by mutual agreement, expiration of the lease term, or other means as specified in the contract or by law.