The Pecking Order Theory (POT) Is Based on an Assumption

question 48

Multiple Choice

The Pecking Order Theory (POT) is based on an assumption that:

• A) Business owners always act in the best interest of the firm
• B) Business owners always act in the self interest
• C) Outside investors are better informed about the issues faced by firms than are business owners
• D) Outside investors serve in the best interest of the firm

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Definitions:

Administrative Functions

Tasks and duties that relate to the running, management, and organization of a business, institution, or governmental body.

Federal District Court

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