The Four Basic Sources of Long-Term Funds for a Firm

question 11

Multiple Choice

The four basic sources of long-term funds for a firm are ________.

• A) current liabilities, long-term debt, common stock, and preferred stock
• B) current liabilities, long-term debt, common stock, and retained earnings
• C) long-term debt, paid-in capital in excess of par, common stock, and retained earnings
• D) long-term debt, common stock, preferred stock, and retained earnings

Recognize the nature vs. nurture debate in perceptual and sensory development.

Understand legal capacity and its implications on the ability of minors to enter and disaffirm contracts.

Recognize and differentiate between contracts that are void, voidable, and unenforceable under various circumstances including those involving minors, intoxication, and mental illness.

Identify the types of contracts deemed necessary for minors and the special protections afforded to them under the law.

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Definitions:

Rigid

Non-flexible or strictly enforced without deviation or exception.

Structured

Organized in a coherent and systematic manner, often referring to financial products, settlements, or organizational planning.

Time-Consuming

Requiring a great deal of time to complete, often more than what is considered reasonable or necessary.

Negotiation/Mediation

A process where disputing parties come together to discuss their differences with the aim of reaching an agreement, with mediation involving a neutral third party to assist.