How Many Ways Can Five People, A, B, C, D

question 35

Multiple Choice

How many ways can five people, A, B, C, D, and E, sit in a row at a concert hall if A and B must sit together?

• A) 48
• B) 120
• C) 12
• D) 24

Comprehend M&M propositions and their implications on corporate finance, including the effects of capital structure on firm value.

Understand the concept of capital structure and the relevance of debt-equity ratios.

Recognize the impact of financial leverage on firm value and bankruptcy risk.

Identify the costs associated with bankruptcy and financial distress.

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Definitions:

Convenience Product

Goods or services that consumers purchase frequently, immediately, and with minimal effort, such as bread, milk, or gas.

Specialty Product

Goods or services with unique characteristics that buyers are often willing to expend considerable effort to purchase.

Unsought Product

Products that consumers do not normally think of buying or do not know exist until they are needed or encountered.

Specialty Products

Products that feature unique attributes distinguishing them from others in the market, motivating consumers to make special purchasing efforts.