Which of the Following Is Not an Appropriate Reason for Firm

question 68

Multiple Choice

Which of the following is not an appropriate reason for firm growth?

• A) Increasing the compensation of the top managers of the firm
• B) Ability to attract and retain talented employees
• C) Need to accommodate the growth of key customers
• D) Market leadership
• E) Economies of scale

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Definitions:

Price Per Share

Price Per Share is the amount of money that each share of a company's stock is worth on the stock market at any given time.

Notes Payable

A written agreement where one party promises to pay another party a specific sum of money on a certain date or on demand.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Common Equity

The percentage of a corporation's equity held by investors in the form of common shares.