Which Is the Most Appropriate Form of Funding for Temporary

question 125

Multiple Choice

Which is the most appropriate form of funding for temporary working capital?

• A)Short-term debt
• B)Long-term debt
• C)Preferred stock
• D)Common stock

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Definitions:

Shareholder Share

Represents the portion of a company's equity owned by an individual or institutional shareholder.

EPS

Earnings Per Share represents the fraction of a firm's profits designated for each share of its common stock, serving as a financial metric.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, typically to conserve the company's cash.

Capital Accounts

The accounts that show the net worth of a company or individual, including contributions from owners or partners and retained earnings.