For the Typical Small Business, the Primary Source of Equity

question 29

Multiple Choice

For the typical small business, the primary source of equity capital for financing growth is:

• A)operating profits.
• B)outside investors.
• C)spontaneous debt financing.
• D)retained earnings.

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Definitions:

Mutual Adjustment

A coordination mechanism where parties adapt to each other's actions and decisions through informal communication.

Complicated Divisions

Complex organizational structures that segregate operations, responsibilities, or tasks into distinct units or departments.

Differentiated Departments

Organizational units within a company that have distinct roles, responsibilities, and strategies, contributing to the company's ability to address various markets or services.

Mutual Adjustment

A coordination mechanism where individuals or groups work together and adjust their work and actions in an informal and spontaneous manner.