The Pecking Order Theory of Capital Structure Indicates That Firms

question 8

True/False

The pecking order theory of capital structure indicates that firms prefer to finance investment opportunities with least expensive forms of financing first and the most expensive last.

---

Definitions:

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or person to another.

Monochronic Cultures

Cultures in which people tend to do one thing at a time.

Low-context Cultures

Cultures in which communication is direct, precise, and explicit, relying less on context and non-verbal cues to convey meaning.

Silent Language

Non-verbal forms of communication, such as body language, facial expressions, and gestures, that convey messages without the use of words.