How Is It Possible for a Corporation to Be Well

question 21

Multiple Choice

How is it possible for a corporation to be well financed without borrowing capital?

• A) through equity retention
• B) through shareholder's bonds
• C) through equity financing
• D) through shareholder's debentures

---

Definitions:

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.

Constant-cost Industry

An industry in which the costs of production do not change as the industry's total output changes.

Competitive Market

A market where there are many buyers and sellers so that no single buyer or seller can influence the price or market conditions.

Economic Profits

The variance between a corporation's total earnings and all its explicit and implicit expenditures.