Which of the Following Do Firms Consider in the Choice

question 15

Multiple Choice

Which of the following do firms consider in the choice of securities issued?

• A)The tax consequences of the chosen security.
• B)The transactions costs of the chosen security.
• C)Whether the chosen security will have a fair price in the market.
• D)All of the above are considered.

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Definitions:

Direct Costs

Direct costs refer to expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Cost Object

Any item for which a separate measurement of costs is desired, such as a product, service, project, or department.

Just-in-Time Manufacturing

A production methodology aimed at reducing flow times within production systems as well as response times from suppliers and to customers, by receiving goods only as they are needed in the production process.

Inventory

A complete list of items such as property, goods in stock, or the contents of a building.