As the Recession of 2007-2008 Loomed Over Both Large and Small

question 1

Multiple Choice

As the recession of 2007-2008 loomed over both large and small businesses, many firms looked for ways to deleverage. The term "deleveraging" implies that the firms:

• A)avoided equity financing.
• B)borrowed money at lower interest rates.
• C)bought back their own stock to reduce the stock outstanding.
• D)replaced much of the debt in their capital structure with equity.

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Definitions:

Allergen Filtration System

A system designed to remove allergens from the air to minimize allergic reactions for individuals in an environment.

Good Faith

Acting with honest intentions without taking unfair advantage over another party, especially in contracts and negotiations.

UCC

The Uniform Commercial Code, a set of laws that regulate sales and commercial transactions in the United States.

Express Warranties

Explicitly stated assurances provided by a seller to a buyer regarding the quality, condition, or performance of a product or service.