The Dominant Source of Financing for U.S.corporations Is

question 5

Multiple Choice

The dominant source of financing for U.S.corporations is

• A) debt financing.
• B) new equity.
• C) internal cash flow.
• D) none of the above.

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Definitions:

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Marginal Product

The extra output or benefit received from using one additional unit of a resource.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, the benefits you could have received by taking an alternative action.

Marginal Cost

The cost added by producing one more item of a product, a crucial factor in economic decision-making regarding production levels.