In Scenario 9-1 Above,the Primary Disadvantages of Using Equity Financing

question 104

Multiple Choice

In Scenario 9-1 above,the primary disadvantages of using equity financing are all but which of the following?

• A) It allows a voice in the management of the business.
• B) It provides for a sharing of the profits.
• C) It does not constrain cash flow.
• D) It shares ownership in the business.

---

Definitions:

Wage Rate

The fixed amount of money or compensation paid to an employee by an employer in return for work performed, typically expressed per hour or per unit of work.

Pay Range

A set spectrum of salaries that an organization is willing to pay for a specific position, considering experience and skill level.

Grade 2

A classification often found in educational settings representing the second level of primary education, or can refer to a level on a scale in various contexts.

Competency-Based Pay Plan

A compensation strategy that bases employee pay on the specific skills, knowledge, and behaviors that directly contribute to their performance and the company's success.