Which of the Following Is a True Statement

question 75

Multiple Choice

Which of the following is a true statement?

• A)A corporation generally obtains equity capital from bondholders.
• B)A corporation must issue either preferred stock or common stock but not both.
• C)When a corporation is experiencing financial problems,an investor should purchase common rather than preferred stock.
• D)Most corporations sell options to satisfy a large part of their financing needs.
• E)A stock split may not cause a stock's value to increasE.

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Definitions:

Behavioral Economics

A branch of economics focusing on how psychological, cognitive, emotional, cultural, and social influences impact the economic choices made by individuals and institutions.

Threat of Rejection

The fear or concern that one's ideas, actions, or presence will not be accepted by others.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Neoclassical Economic Model

An economic theory that focuses on how the equilibrium state of markets is reached through supply and demand forces, emphasizing utility maximization and profit maximization.