Which One of the Following Is a Capital Structure Decision

question 35

Multiple Choice

Which one of the following is a capital structure decision?

• A)determining the optimal inventory level
• B)establishing the preferred debt-equity level
• C)selecting new equipment to purchase
• D)setting the terms of sale for credit sales
• E)determining when suppliers should be paid

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Definitions:

Command Economy

An economic system in which the government or central authority makes all decisions about the production and distribution of goods and services.

Centralized

A system or organization where decision-making and administrative processes are concentrated at a single point or center.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the percentage increase in real GDP.

Production Possibility Frontier

A graph showing all the highest production options for two or more products, considering a certain amount of resources.