Managers Should Consider ________ for External Financing When Agency Costs

question 35

Multiple Choice

Managers should consider ________ for external financing when agency costs are significant.

• A) long-term debt
• B) retained earnings
• C) internal equity
• D) short-term debt

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Definitions:

Analytic Thought

A cognitive process that involves breaking down complex information or concepts into smaller, more manageable parts for examination and evaluation.

Logical Thinking

The process of using a rational, systematic series of steps to come to conclusions.

Thinking Intuitively

The process of making judgments and solving problems based on instincts and feelings rather than explicit reasoning or analysis.

Comforting Prejudices

Prejudiced beliefs that provide comfort by reinforcing existing opinions or societal norms.