The Pecking Order Explanation of Capital Structure States That a Hierarchy

question 65

True/False

The pecking order explanation of capital structure states that a hierarchy of financing exists for firms, in which new external debt financing is employed first, followed by retained earnings and finally by external equity financing.

---

Definitions:

Flex-Time

Flex-Time is an employment practice that allows workers to choose their work hours within a specified range to accommodate personal needs and preferences, promoting work-life balance.

Compressed Workweek

A work schedule that allows an employee to work a full-time job in fewer days than the traditional five-day workweek.

Flexible Work Arrangements

Employment terms that allow employees to vary their working hours, locations, or schedules to integrate work with personal life effectively.

Prenatal Viral Infections

Viruses contracted by the mother during pregnancy that can cross the placental barrier and potentially harm the developing fetus.