One Advantage of Using Ordinary Shares as a Source of Funds

question 46

True/False

One advantage of using ordinary shares as a source of funds is that ordinary shares does not legally obligate the firm to make payments to shareholders.

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Definitions:

Auto Makers

Auto makers are companies engaged in the design, manufacturing, marketing, and selling of motor vehicles.

Core Inflation Rate

A measure of inflation that excludes volatile items such as food and energy, giving a clearer view of long-term inflation trends.

CPI Basket

A representative collection of goods and services used to calculate the Consumer Price Index.

Consumer Prices

The prices paid by consumers for goods and services, which can be influenced by various factors including supply and demand, production costs, and taxes.