That Only Large,well-Established Corporations Have Access to Securities Markets

question 20

Multiple Choice

That only large,well-established corporations have access to securities markets

• A)explains why indirect finance is such an important source of external funds for businesses.
• B)can be explained by the problem of moral hazard.
• C)can be explained by government regulations that prohibit small firms from acquiring funds in securities markets.
• D)explains why newer and smaller corporations rely so heavily on the new issues market for funds.

Understand the characteristics of different parenting styles.

Identify the methods and outcomes of specific child-rearing techniques.

Analyze the role of parental warmth and control in child development.

Evaluate the effects of sibling relationships on childhood development.

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Definitions:

Consumer Surplus

The discrepancy between the price consumers are ready to offer for a good or service and the price they end up paying.

Marginal Benefit

The enhanced enjoyment or utility gained from the consumption of one extra unit of a good or service.

Total Revenue

The collective revenue a business accumulates from sales of products or provision of services within a set period.

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the overall benefit to society, where the marginal costs of production are equal to the marginal benefits for all goods and services.