Which Form of Financing Do Firms Prefer to Use First

question 89

Multiple Choice

Which form of financing do firms prefer to use first according to the pecking-order theory?

• A)regular debt
• B)convertible debt
• C)common stock
• D)preferred stock
• E)internal funds

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Definitions:

Planning Budget

A budget created for a specific level of activity; it helps management set financial targets and evaluate performance.

Customers Served

refers to the number or segment of clients to whom a business has provided products or services within a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, thereby providing a more useful tool for controlling costs.

Patient-Visits

The instances or occasions when patients come to a healthcare provider or facility for treatment or consultation.