Since They Require Less Monitoring of Firms,________ Contracts Are Used

question 45

Multiple Choice

Since they require less monitoring of firms,________ contracts are used more frequently than ________ contracts to raise capital.

• A)debt;equity
• B)equity;debt
• C)debt;loan
• D)equity;stock

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Definitions:

Social Categorization

The process of classifying individuals into groups based on shared characteristics such as race, gender, age, etc.

Innately Programmed

Characteristics, behaviors, or instincts that are hard-wired into an organism at birth.

Self-fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true.

Prejudices

Preconceived opinions or judgments about individuals or groups that are not based on reason or actual experience, often manifesting as biases or discrimination.