Equity Financing Is a Popular Choice to Provide Long-Term Financing

question 86

Multiple Choice

Equity financing is a popular choice to provide long-term financing for a corporation because:

• A) a lender is always available to provide this type of financing.
• B) it does not have to be repaid.
• C) repayment doesn't have to be made for ten years or more.
• D) only interest must be paid for the first five years.
• E) it does not cost anything to sell in the primary market.

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Definitions:

Relationship Schema

Cognitive frameworks consisting of beliefs, patterns, and expectations that individuals use to understand and navigate their interpersonal relationships.

Empathic Compassion

The emotional response of feeling concern for another's well-being, combined with the desire to help reduce their suffering.

Neuroticism

A personality trait involving a long-term tendency to be in a negative or anxious emotional state.

Relationship Progressing

The development and deepening of a relationship, characterized by increased intimacy, commitment, and trust.