Survey Literature Indicates That Separate Project Costs of Capital

question 86

Multiple Choice

Survey literature indicates that separate project costs of capital

• A)are used by less than half of major companies.
• B)are used by more than 75% of major companies.
• C)are used by nearly all major companies.
• D)are almost never used by major companies.

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Definitions:

Deferred Creditors

Creditors that hold certain debts that are payable to the contributories of the company ahead of repayments of capital to those contributories.

Ordinary Unsecured Creditors

Creditors whose debts have no preferential treatment under the Corporations Act and are the last to be paid before funds are returned to contributories.

Preferential Unsecured Creditor

A creditor who is not secured by collateral but has the right to be paid before other unsecured creditors in the event of a debtor's bankruptcy.

Trade Creditors

Entities to whom money is owed for goods and services provided in the normal course of business, but which has not yet been paid.