As the Recession of 2007-2008 Loomed Over Both Large and Small

question 84

Multiple Choice

As the recession of 2007-2008 loomed over both large and small businesses, many firms looked for ways to deleverage. The term deleveraging implies that:

• A) the firms avoided equity financing.
• B) the firms borrowed money at lower interest rates.
• C) the firms bought back their own stock to reduce the stock outstanding.
• D) the firms replaced much of the debt in their capital structure with equity.

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Definitions:

Extraorganizational

Extraorganizational refers to activities, practices, or influences that exist or occur outside the boundaries of a specific organization.

Ad Hoc Reports

Custom reports generated to meet specific criteria at a particular time, not scheduled or part of regular reporting.

Configure-to-order

A manufacturing process where products are assembled and configured according to the specific requirements of the customer after the order is received.

Procurement

The process of acquiring goods, services, or works from an external source, often involving tendering or bidding.