If a Firm Does Not Want to Use Either Dividends

question 81

Multiple Choice

If a firm does not want to use either dividends or debt as its balancing item, then it is most apt to use _____ for that purpose.

• A) inventory
• B) cash
• C) equity
• D)fixed assets

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Definitions:

Probability

The likelihood or chance of an event occurring, often expressed as a number between 0 and 1.

Small-Numbers Bias

A situation in markets where the fewness of buyers or sellers can significantly impact the negotiation power and market outcomes.

Stock Market

A public market for buying, selling, and trading company stocks and securities, reflecting the economic health of a country or region.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, typically through the purchase of assets like stocks or bonds.