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.

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Definitions:

Assertive Confrontation

A communication strategy used to address and resolve conflicts directly and respectfully.

Destructive Confrontation

A conflict approach that likely results in harm or breakdown of relationships rather than constructive solutions.

Discrepant Viewpoint

A perspective or opinion that significantly differs from another, often leading to disagreements or debates on a particular issue.

Additive Empathy

The practice of actively building on one's empathy by accumulating understanding and emotional insights from various situations or interactions.