Which Form of Financing Do Firms Prefer to Use First

question 89

Multiple Choice

Which form of financing do firms prefer to use first according to the pecking-order theory?

• A)regular debt
• B)convertible debt
• C)common stock
• D)preferred stock
• E)internal funds

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Definitions:

Understanding

The ability to grasp the meaning, significance, or nature of something, typically leading to a deeper comprehension or empathy.

Participative Leadership

A leadership style where the leader involves team members in decision-making processes to encourage collaboration and engagement.

Technical Competence

The expertise and ability to perform the specialized tasks relevant to a particular field or job.

Traditional Compromise

Traditional compromise involves resolving differences or disputes by mutual concessions, often adhering to established norms or practices.