An Increase in Total Assets Can Be Financed by an Increase

question 89

Multiple Choice

An increase in total assets can be financed by an increase in which of the following capital components:

• A) debt
• B) preferred stock
• C) common equity
• D) All of the above

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Definitions:

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods, for which demand increases with income.

Quantity Demanded

The amount of a product consumers are willing and able to purchase at a given price over a specified time period.

Income

The money received by an individual or business for work done, from investments, or from the sale of goods or services.

Cross-Price Elasticity

An index indicating the variation in demand for a particular item as a result of the price alteration of a different item.