The Basic Sources of Capital for a Firm Include All

question 53

Multiple Choice

The basic sources of capital for a firm include all of the following EXCEPT

• A) long-term debt.
• B) common stock.
• C) preferred stock.
• D) current liabilities.

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Definitions:

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

Directing

The process in management that involves guiding, leading, and overseeing the performance of employees to achieve organizational goals.

Direct Materials

Raw materials that are directly traceable to the production of goods.

Indirect Materials

Materials used in the production process, but not directly traceable to a finished product, like lubricants and cleaning supplies for machine maintenance.