Businesses Match Their Long-Term Capital Needs to

question 279

Multiple Choice

Businesses match their long-term capital needs to

• A) the firm's debt to equity ratio.
• B) the ratio of long-term vs. short-term capital available.
• C) trade credit discounts.
• D) their long-term goals and objectives.

---

Definitions:

Economic Profit

The total revenue of a business minus its explicit and implicit costs.

Least-Cost Production Technique

An approach in production that minimizes input costs for a given output level, optimizing resource use efficiency.

Competitive Market Economy

An economic system where supply and demand determine the prices of goods and services, with minimal government intervention.

Economically Most Efficient

The state of achieving the highest level of output with the lowest possible input, optimizing the use of resources without waste.