Higher Equity Multiplication Means That a Firm Is Using a Greater

question 148

Multiple Choice

Higher equity multiplication means that a firm is using a greater amount of ________ to finance its productive assets.

• A) income
• B) collateral
• C) debt
• D) resources

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Definitions:

Number of Firms

The total count of businesses operating within a market or industry, a key factor in determining market structure and competition levels.

Downsloping Demand

A situation where demand decreases as the price increases, typically illustrated by a downward sloping demand curve.

Upsloping Supply

This describes a supply curve that slants upward from left to right, indicating that the quantity of goods supplied increases as the price rises.

Consumer Income

The total earnings of consumers, including salary, wages, and other income sources, influencing their purchasing power.