The Pecking Order Theory Implies That Firms Prefer Internal to External

question 52

True/False

The pecking order theory implies that firms prefer internal to external financing.

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Definitions:

Philanthropic Goodwill

The positive recognition and reputation a business gains through charitable activities and contributions to society.

Social Responsibility Pyramid

A concept that businesses are accountable to society and should act in a manner that benefits society at large, beyond their own interests.

Ethical Responsibility

The duty to make decisions and conduct oneself in a way that is fair, honest, and respects the rights and dignity of all stakeholders.

Philanthropic Goodwill

The positive reputation and brand value that an organization gains through its charitable actions and contributions to society.