As a Source of Financing, Once Retained Earnings Have Been

question 4

Multiple Choice

As a source of financing, once retained earnings have been exhausted, the weighted average cost of capital will

• A) remain the same.
• B) change in an undetermined direction.
• C) decrease.
• D) increase.

---

Definitions:

Satiety

The feeling of being full or satisfied, typically in the context of eating, which reduces the desire to eat more food.

Drive Reduction

A theory in psychology suggesting that psychological needs create an aroused state that drives an organism to reduce that need by engaging in some goal-directed behavior.

Motivated Behaviors

Actions driven by internal desires and needs, such as hunger or achievement, guiding the organism towards specific goals.

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, necessary for survival.