Which of the Following Are Advantages for Equity Financing

question 5

Multiple Choice

Which of the following are advantages for equity financing?

• A)Capital is usually only available in very large amounts and needs repayment
• B)It provides large injections of cash or capital,there are no interest payments,and no obligation to repay capital
• C)The amount can easily be varied according to your bank if it is repaid
• D)All of these choices

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Definitions:

Product Costs

Costs directly associated with the manufacturing of products, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.

Indirect Materials

Supplies used in the production process that are not directly traceable to a finished product.

Factory Overhead

Factory overhead refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor.