Different Divisions with Differing Lines of Business Use Different Costs

question 42

Multiple Choice

Different divisions with differing lines of business use different costs of capital because their cost of ________ could be different.

• A)debt
• B)equity
• C)capital
• D)assets
• E)common stock capital

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Definitions:

Tortious Actions

Wrongful acts that cause harm or loss to another, leading to civil legal liability.

Respondeat Superior

A legal doctrine holding an employer or principal liable for the actions of an employee or agent performed within the course of their employment or agency.

Apparent Agency

A legal doctrine allowing a principal to be held liable for the actions of an agent, based on the appearance of authority given to the agent by the principal.

Principal's Actions

Refers to the deeds or activities undertaken by the principal figure in a contractual or agency relationship, affecting the relationship's legal standing.