Which of the Following Activities Is Most Likely to Be

question 210

Multiple Choice

Which of the following activities is most likely to be considered rent seeking?

• A)buying an apartment building 
• B)hiring a lobbyist 
• C)voting for a politician who supports government spending 
• D)buying common stock

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Definitions:

External Financing

Funds raised from sources outside the company, such as investors or lenders.

Sustainable Rate

The sustainable rate often refers to the growth rate a company can maintain without needing to increase financial leverage or equity financing.

Internal Rate

The interest rate at which the net present value of all the cash flows from an investment or project is zero.