Which Ranking of Financing from Most Preferred to Least Preferred

question 65

Multiple Choice

Which ranking of financing from most preferred to least preferred is predicted by 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

---

Definitions:

Terror Management Theory

A psychological concept suggesting that humans' awareness of their mortality drives their beliefs, behaviors, and emotional responses.

Cognitive Appraisal Theory

A psychological theory that suggests emotions are determined by an individual's assessment of a situation's significance to their well-being.

Cross-Cultural Value

Values or standards of behavior that are endorsed or prioritized differently across cultures.

Benevolence

The quality of being well-meaning; kindness.