Reasons That Firms May Find Themselves with Relatively High Costs

question 24

Multiple Choice

Reasons that firms may find themselves with relatively high costs of capital include:

• A) The firms reside in emerging countries with undeveloped capital markets.
• B) The firms are too small to easily gain access to their own national securities market.
• C) The firms are family owned and they choose not to access public markets and lose control of the firm.
• D) all of the above

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Definitions:

Boreal Forests

Vast biomes consisting primarily of coniferous trees, located in the northern regions across the taiga zone, known for cold climates and long winters.

Ice Cap

A mass of ice that covers less than 50,000 square kilometers but blankets land completely, often found in polar and subpolar regions.

Broadleaf Trees

Trees characterized by wide, flat leaves as opposed to needle-like leaves, common in deciduous forests.

Dormant

A state of physical or biological inactivity or rest, during which growth, development, and physical activity are temporarily stopped.