Equity Contracts Account for a Small Fraction of External Funds

question 126

Multiple Choice

Equity contracts account for a small fraction of external funds raised by American businesses because

• A) costly state verification makes the equity contract less desirable than the debt contract.
• B) there is greater scope for moral hazard problems under equity contracts, as compared to debt contracts.
• C) equity contracts do not permit borrowing firms to raise additional funds by issuing debt.
• D) all of the above.
• E) both A and B of the above.

Recognize the role and rules of parliamentary procedure in formal group settings.

Understand the nature of listening and its components, including remembering and filtering.

Know the characteristics of effective voice mail communication.

Understand the impact of nonverbal communication, including space language and gestures, on interpersonal interactions.

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Definitions:

Resist

To oppose or strive against something or someone; showing reluctance or opposition to accept or comply with changes, conditions, or regulations.

Experimenter

A person who conducts scientific tests and trials to explore hypotheses, investigate phenomena, or demonstrate principles.

Harm

Physical injury or psychological damage inflicted on a person, animal, or object.

Reward Power

The ability to influence others by offering something desirable, such as praise, promotions, or monetary benefits, as a means of control.