Generally the Least Expensive Source of Long-Term Capital Is ________

question 9

Multiple Choice

Generally the least expensive source of long-term capital is ________.

• A) retained earnings
• B) preferred stock
• C) long-term debt
• D) common stock

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Definitions:

Economically Efficient Outcome

A situation where resources are allocated in a way that maximizes the net benefit to society or minimizes wastage.

Market Demand Curve

Graphical representation of the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Negative Externalities

Unintended adverse effects or costs imposed on a third party or the environment as a result of an economic activity.