Which of the Following Lists Presents the Order of Financing

question 12

Multiple Choice

Which of the following lists presents the order of financing from most preferred to least preferred according to the pecking order theory?

• A) Debt issue, stock issue, internally generated funds
• B) Internally generated funds, debt issue, stock issue
• C) Stock issue, internally generated funds, debt issue
• D) Internally generated funds, stock issue, debt issue

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Definitions:

Business Firm

An organization engaged in commercial, industrial, or professional activities, either for profit or non-profit.

Independent Regulatory Agencies

Independent regulatory agencies are federal bodies created by Congress to enforce and regulate specific areas of economic activity, operating with some degree of independence from executive control.

Federal Communications Commission

A United States government agency that regulates interstate and international communications via radio, television, wire, satellite, and cable.

Executive Branch

The branch of government responsible for implementing and enforcing laws, usually led by a president or prime minister.