Which of the Following Is an Example of Restructuring the Firm

question 55

Multiple Choice

Which of the following is an example of restructuring the firm?

• A)Dividends are increased from $1 to $2 per share
• B)A new investment increases the firm's business risk
• C)New equity is issued and the proceeds repay debt
• D)A new board of directors is elected to the firm

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Definitions:

Utility

The subjective benefit or satisfaction a person expects from a choice or course of action.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of making choices.

Economizing Behavior

The practice of seeking to achieve maximum utility with limited resources, leading to optimal decision making.

Lowest Cost Method

A principle of optimizing operations or production by minimizing the costs involved in the process.