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:

Primary Drives

are innate biological needs (e.g., hunger, thirst, sleep) that motivate behavior essential for survival.

Hunger

A physiological state that motivates an organism to seek food for energy.

Thirst

The basic physiological sensation of needing to drink fluids, triggered by the body's need for water to maintain balance and function.

Homeostasis

The tendency of an organism to regulate internal conditions to maintain health and functioning, regardless of outside conditions.