There Are a Number of Different Possible Sources of Capital

question 183

Multiple Choice

There are a number of different possible sources of capital, but:

• A) the sale of stock or bonds is considered to be an internal source of capital.
• B) debt financing is now illegal in the U.S.
• C) they are all likely to have the same effect when it comes to the time horizon within which a marketing manager's plan is expected to be profitable.
• D) a firm that is not yet profitable is likely to need to use external sources.
• E) a firm isn't likely to be able to sell stock unless its marketing plan is a sure thing.

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Definitions:

Work in Process

Inventory that represents partially completed goods which are still in the production process.

Actual Manufacturing Overhead Cost

The actual costs incurred for indirect manufacturing expenses, such as utilities, rent, and maintenance.

Year

A period of time consisting of 12 months or 365 days, used as a basic unit for measuring time in relation to the earth's orbit around the sun.

Cost of Goods Available for Sale

The total cost of inventory that a business has ready for sale, comprising both beginning inventory plus the cost of goods manufactured.