Corporations Utilize External Financing Either Because They Do Not Have

question 100

True/False

Corporations utilize external financing either because they do not have sufficient earnings to reinvest or they want to rebalance their capital structures.

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Definitions:

Economic Basis

refers to the foundational activities, sectors, or resources upon which an economy is built and sustains its growth.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity.

Nations

Large groups of people united by common descent, history, culture, or language, inhabiting a particular country or territory.