Firms Are Able to Expand Their Operations by Acquiring Funds

question 51

Multiple Choice

Firms are able to expand their operations by acquiring funds from households.They can do this directly through financial markets such as ________,or indirectly through financial intermediaries such as ________.

• A) stock markets; bond markets
• B) stock markets; banks
• C) banks; bond markets
• D) bond markets; stock markets

Determine the internal rate of return for an investment.

Understand the role of compound interest rates in determining the present value.

Analyze the financial viability of capital investment proposals through net present value analysis.

Understand the benefits and challenges of international business.

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Definitions:

Guarantees

Formal promises or assurances, typically in writing, that certain conditions will be fulfilled, especially relating to the quality or durability of a product.

Good

An item or product that is produced or manufactured to fulfill wants or needs.

Service

An intangible act or use benefit provided by one party to another that does not result in ownership of anything.

Position

The place a brand or product occupies in the consumers' minds relative to competitors, often based on attributes, benefits, perceptions, or reputation.