If a Firm Changes Their Capital Structure by Immediately Selling

question 99

Multiple Choice

If a firm changes their capital structure by immediately selling additional claims of one type of capital and using the proceeds to retire another kind of claims,they are using which type of capital structure change?

• A)Active
• B)Passive
• C)Separation
• D)Supportive

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Definitions:

Petroleum

A naturally occurring liquid found beneath the Earth's surface that can be refined into fuel and other products.

Recovered

A state of having improved from or overcome adversity, illness, or a downturn.

Proved Reserves

The quantity of natural resources, such as oil or gas, that can be technically and economically viable to extract under current conditions.

Economic Theory

A set of principles and frameworks that seek to explain how economies work, covering areas like market dynamics, production, and distribution.