Indirect Costs of Financial Distress

question 12

Multiple Choice

Indirect costs of financial distress:

• A) effectively limit the amount of equity a firm issues.
• B) serve as an incentive to increase the financial leverage of a firm.
• C) include direct costs such as legal and accounting fees.
• D) include the costs incurred by a firm as it tries to avoid seeking bankruptcy protection.

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Definitions:

Geographic Segmentation

A marketing strategy that divides potential customers or markets into groups based on their geographic location, such as by country, region, or city.

Demographic Segmentation

Dividing a market into segments based on demographic factors like age, gender, income, education, or ethnicity, to target specific groups more effectively.

Retail Customers

are individuals who purchase goods or services for personal use from retail stores or outlets.

Occasion Segmentation

The process of dividing the market into groups according to when consumers buy or use a product based on specific occasions or circumstances.