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

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Definitions:

Major Redirection

A significant change in strategy or focus, often requiring an organization or individual to adopt new approaches or paths.

Fundamental Shifts

Significant changes in the core or essential parts of a society, economy, or industry that alter its direction or methods.

Evolution

The process of change and development over time, often referring to the gradual adaptation of organisms or ideas.

Bottom-up Change

A change management approach where initiatives and ideas originate from lower levels of the organizational hierarchy, engaging employees and encouraging innovation and collaboration.