Among Various Sources of Financing, Which of the Following Will

question 2

Multiple Choice

Among various sources of financing, which of the following will receive favourable tax treatments by issuers?

• A) long-term debt
• B) common stock
• C) retained earnings
• D) preferred stock

---

Definitions:

Steady State

A condition where all aspects of a system are in balance and unchanging over time, often used in physics, chemistry, and physiology.

Activation

The process of making something active or operative, such as initiating a chemical reaction or stimulating a cell to perform a function.

Neutrons

Subatomic particles found in the nucleus of an atom, with no electric charge and a mass slightly greater than that of protons.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and defining the element's atomic number.