Which of the Following Are Correct According to Pecking-Order Theory

question 86

Multiple Choice

Which of the following are correct according to pecking-order theory?
I.Firms stockpile internally-generated cash.
II.There is an inverse relationship between a firm's profit level and its debt level.
III.Firms avoid external debt at all costs.
IV.A firm's capital structure is dictated by its need for external financing.

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

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and our daily lives.

Cochlear Implants

Cochlear implants are medical devices that bypass damaged structures in the inner ear and directly stimulate the auditory nerve, allowing individuals with profound hearing loss to perceive sound.

Deafness

Having a diminished ability to hear or complete hearing loss.

Natural Hearing

The ability to perceive sound through the ear's normal anatomical structure and neural processes without the aid of any artificial devices.