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:

Vendor's Invoice

A document issued by a vendor to a buyer indicating the products or services provided, quantities, prices, and terms of payment.

Perpetual

Continuing indefinitely without interruption; in accounting, it often refers to systems that continuously update inventory or records.

Inventory System

A method or system used to plan, organize, and control the goods or materials that are held in stock, ensuring efficient management and use of inventory.

Costly

Involving high expenses; describing something that requires significant financial outlay.