Under Most Circumstances, a Corporate Firm Will Choose to Use

question 103

Multiple Choice

Under most circumstances, a corporate firm will choose to use retained earnings as a way to finance its activities because

• A)it carries a higher cost than issuing new shares of stock.
• B)there is less regulatory review when internal funds are used for financing.
• C)current stockholders experience the dilution of their share of stock.
• D)All of these alternatives are reasons that corporations prefer to use retained earnings.

Understand the role of self-confidence and its development in increasing employee performance.

Realize the effectiveness of goal setting and the characteristics that make goals motivating.

Identify the components and benefits of 360-degree feedback in employee development.

Grasp the importance of feedback frequency, source, and specificity in improving job performance.

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Definitions:

Ratio Analysis

A technique for evaluating financial statements that expresses the relationship between selected financial statement data.

Total Debt

The sum of all short-term and long-term obligations owed by an entity, including bonds, loans, and other forms of financial liabilities.

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, representing what the entity owns outright.

Creditor's Point Of View

The perspective of a lender or anyone to whom money is owed, focusing on the borrower's ability to repay the debt and interest.