The Pecking Order Theory of Capital Structure Suggests That Firms

question 2

Multiple Choice

The pecking order theory of capital structure suggests that firms follow which order when raising capital?

• A)Internal cash flow, issue debt, issue equity
• B)Internal cash flow, issue equity, issue debt
• C)Issue debt, internal cash flow, issue equity
• D)Issue debt, issue equity, internal cash flow

---

Definitions:

Extended Family

A family group that extends beyond the nuclear family, including relatives such as grandparents, aunts, uncles, and cousins.

Nuclear Unit

A family group consisting of parents and their children, regarded as a basic social unit.

Zero-Child Families

Households consisting of couples or single individuals without children, either by choice or as a result of circumstances.

Portrayed by Society

Describes how societal norms and values influence the representation of individuals, groups, or concepts in various forms of media and discourse.