Optimal Capital Structure "First" Criteria Suggests That Flexibility Should Be

question 17

Multiple Choice

Optimal capital structure "first" criteria suggests that flexibility should be ________ and that the best way to obtain that is with ________ levels of debt and ________ levels of equity.

• A)high; high; low
• B)low; low; high
• C)high; low; high
• D)low; high; low

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Definitions:

Comarketing

Cooperative arrangement in which two businesses jointly market each other’s products.

Cobranding

Cooperative arrangement in which two or more businesses team up to closely link their names on a single product.

Affinity Program

Marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities.

Relationship Management

Collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.