What Is a Drawback of Using Only Equity to Raise

question 57

Multiple Choice

What is a drawback of using only equity to raise capital?

• A) The cost
• B) Fluctuations in the stock market
• C) Dilution of the control of the company
• D) That it will cause EPS to roller coaster
• E) That it doesn't raise as much capital as debt financing

Analyze the concept of practices in linking micro and macro levels of society.

Grasp the significance of Norbert Elias's views on the process of civilization.

Recognize the power of agency in Anthony Giddens's structuration theory.

Differentiate between practical consciousness and discursive consciousness.

---

Definitions:

Skimming

A pricing strategy in which a high price is set for a new product to “skim” off customers willing to pay a premium before lowering the price to attract a broader market.

Demand-oriented

An approach to pricing, production, and marketing that focuses on the demand levels and preferences of consumers.

Approximate Price

An estimated cost given for a product or service, offering a ballpark figure that may not account for detailed specifics or potential changes.

Bundle

A marketing strategy that involves offering several products or services together as a combined package, usually at a lower price than they would cost individually.