An Advantage of Financing Through an Issue of Ordinary Shares

question 20

Multiple Choice

An advantage of financing through an issue of ordinary shares rather than with borrowing is:

• A)it does not require a fixed periodic repayment.
• B)it involves lower transaction costs.
• C)it does not dilute proportional ownership.
• D)All of the above are advantages.

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Definitions:

Classical Conditioning

A way of learning that involves making connections between a stimulus found in the environment and one that naturally presents itself.

Cognitive Learning Theory

A theory of psychology that emphasizes the importance of internal processes and knowledge acquisition, suggesting that learning is an active mental process of acquiring, remembering, and using knowledge.

Insight

The capacity to gain an accurate and deep understanding of a person or situation.

Operant Learning

A method of learning that occurs through rewards and punishments for behavior, also known as operant conditioning.