Which Two of the Following Are Generally Used to Fund

question 25

Multiple Choice

Which two of the following are generally used to fund the external financing need?
I. sale of fixed assets
II. increase in accounts payable
III. issuance of long-term debt
IV. sale of equity securities

• A)I and II
• B)I and III
• C)II and III
• D)II and IV
• E)III and IV

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Definitions:

Rational Consumers

Individuals who seek to maximize their utility or satisfaction from the consumption of goods and services, making decisions based on available information and rational criteria.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, illustrating varying combinations of two products that give equal satisfaction and utility.

Hamburgers

A widely enjoyed dish made of a grilled or fried patty usually made from ground beef, served within a cut-open bread roll or bun.

Indifference Curve

A graph showing different combinations of goods or services that give a consumer equal satisfaction and utility.