A Firm Might Issue Stock to

question 112

Multiple Choice

A firm might issue stock to

• A) finance a capital project.
• B) decrease the number of owners.
• C) to increase its debt.
• D) employ more people.

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Definitions:

Idle Time

The period of time when resources, such as employees or machines, are available but not in use or producing, often resulting in inefficiency.

Overhead

All indirect costs of running a business that cannot be directly attributed to a specific product or service.

Equipment Breakdown

The failure or malfunction of machinery or equipment, interrupting regular operations.

On-costs

Additional costs beyond basic salaries that include items like payroll taxes, superannuation, and workers' compensation.