External Financing by ________ Should Be More Important in Developing

question 1

Multiple Choice

External financing by ________ should be more important in developing countries than in industrialized countries because information about private firms is more difficult to collect in developing countries.

• A)financial intermediaries
• B)bonds
• C)stock
• D)direct lending

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Definitions:

Operating Profit

Income from a company's core business operations, excluding deductions of interest and taxes, as well as non-operational income like investments.

Property Taxes

Taxes imposed on property owners based on the assessed value of their property, typically levied by local governments.

Journal Entry

A record in accounting that notes the debit and credit transactions affecting the balance sheet and income statement.

LIFO Method

Last-In, First-Out is an inventory valuation method where the most recently produced or acquired items are the first to be expensed.