As the Cost of Capital Increases

question 15

Multiple Choice

As the cost of capital increases

• A) fewer projects are accepted.
• B) more projects are accepted.
• C) project selection remains unchanged.
• D) None of these.

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Definitions:

Independent Contractor

An individual or entity contracted to perform work for—or provide services to—another entity as a non-employee.

Tort Liability

Legal responsibility arising from a civil wrong or injury to others that does not arise from a breach of contract or other agreement.

Disclosed Principal

A legal relationship in which an agent acts on behalf of a principal, with the third party being aware of the principal’s identity.

Unidentified Principal

A principal in an agency relationship whose identity remains unknown to the third party at the time of the agency transaction.