All of the Following Are Primary Ways to Allocate Capital

question 42

Multiple Choice

All of the following are primary ways to allocate capital, EXCEPT

• A) engaging in mergers and acquisitions.
• B) paying dividends.
• C) repurchasing shares.
• D) decreasing the working capital of the business.
• E) returning cash to debtholders.

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Definitions:

Transactions

Financial activities involving the exchange of goods, services, or funds between two or more parties.

International Exchange

The system or process through which different currencies are traded, affecting global trade and economics.

Investment Income

Income earned from various forms of investments, including dividends, interest payments, and profits from the sale of assets or securities.

Creditor Nation

A country that has more investments abroad than other countries have within its borders, making it a net lender to the rest of the world.