A Company Can Pay for Its Expansion in All the Following

question 16

Multiple Choice

A company can pay for its expansion in all the following ways except:

• A) by using the earnings generated from its sale of obsolete equipment.
• B) by persuading a director's mother to make a personal loan to the company.
• C) by purchasing bonds in the secondary market.
• D) by plowing back part of its profits.

---

Definitions:

Holding Constant

Holding constant is a method used in analysis where certain variables are kept unchanged in order to isolate the effects of other variables.

Independent Variables

Variables in a statistical model that are presumed to influence or cause changes in another variable, without being affected by it.

Increase

Increase refers to the action of becoming larger or greater in size, number, value, or amount.

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population, specifically the standard deviation of the sampling distribution of a statistic.