Which of the Following Statements Is Not True with Regard

question 42

Multiple Choice

Which of the following statements is not true with regard to capital market?

• A)The funds are raised for a short period of time.
• B)Both debt and equity funds can be raised.
• C)It is classified into two types.
• D)All of the above

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Definitions:

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion with the level of business activity or production volume, such as raw materials and direct labor costs.

Target Income

The desired profit level that a company aims to achieve within a specific period, often used in budgeting and financial planning.

Contribution Margin

The amount of revenue remaining after subtracting variable costs, used to cover fixed costs and generate profit.