What Could Happen to "Unused" Dollars After a Firm Has

question 19

Multiple Choice

What could happen to "unused" dollars after a firm has chosen capital projects but still has remaining unallocated funds?

• A)The remaining funds may be invested at the "going rate" of the company.
• B)The remaining funds,if internally generated,may be paid back to shareholders as a dividend.
• C)If the remaining funds are part of borrowing,then the firm may choose to borrow less money.
• D)All of the choices above are potential uses of unallocated funds.

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Definitions:

Horizontal Privity

A legal term referring to a relationship between entities at the same level of operation, often used in property and contract law to describe certain kinds of relationships relevant to the transfer of rights or obligations.

Breach Of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality, condition, or performance of a product or service.

Seller

An individual or entity that offers goods or services for sale to consumers or other businesses.

Express Warranty

A seller's explicit promise or guarantee about the condition or quality of a product.