If a Firm Changes Their Capital Structure by Waiting Until

question 96

Multiple Choice

If a firm changes their capital structure by waiting until the firm requires additional capital to cover capital budgeting needs and then selling more of the type of claims they wish to increase, they are using this type of capital structure change.

• A) active
• B) passive
• C) separation
• D) supportive

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Definitions:

Managerial Class

A segment of society composed of individuals in managerial positions who have authority and control over resources and decision-making.

Middle-Income

Refers to individuals, families, or nations that fall financially between the lower and upper income brackets, often associated with a moderate standard of living.

Cultural Conflicts

Disagreements or discord arising from differences in cultural values, beliefs, or practices between groups or individuals.

Family Expectations

Refers to the set of standards or beliefs held by family members that dictate how individuals should behave, achieve, and conduct themselves within and outside the family.