When a Firm Needs a Large Amount of Capital for an Extended

question 96

Multiple Choice

When a firm needs a large amount of capital for an extended period of time,what type of financing,even with stiff annual or semi-annual interest payments,might be best?

• A) Retained earnings
• B) Corporate bonds
• C) Common stock
• D) Stock split
• E) IPO

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Definitions:

Guiding Principles

Fundamental norms, rules, or values that represent what is desirable and positive for a person, group, organization, or community, and help it in determining the rightfulness or wrongfulness of its actions.

Systematic Inquiry

A structured and methodical approach to investigating questions or problems to generate knowledge.

American Evaluation Association

A professional organization dedicated to improving evaluation practices and methods, enhancing evaluation use, and supporting the contribution of evaluation to the generation of theory and knowledge about effective human action.

Autonomy

Autonomy in ethics and morality refers to the capacity of a rational individual to make an informed, uncoerced decision. It is often discussed in the context of bioethics, philosophy, and psychology.