Firms Can Alter Their Capital Structure By

question 6

Multiple Choice

Firms can alter their capital structure by:

• A)not accepting any capital budgeting projects.
• B)investing in non-tangible assets.
• C)issuing stock to repay debt.
• D)becoming a limited liability company.

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Definitions:

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input, keeping all other inputs constant.

Wage Rate

The fixed amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

Total Product

refers to the total output or quantity of goods produced by a firm or country at a given level of input during a specific period.

Labor Demand Curve

A graphical representation that shows the quantity of labor that businesses are willing and able to hire at different wage rates, typically sloping downward from left to right.