If a Firm Sells Shares of Stock, It Is Financing

question 43

Multiple Choice

If a firm sells shares of stock, it is financing with

• A) debt.
• B) liabilities.
• C) spectator capital.
• D) equity.

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Definitions:

Operating Inefficiently

Conducting business in a manner that does not maximize output or profits relative to input and resources.

Technological Advance

The development and application of innovative tools, machines, systems, and methods to improve processes, productivity, and efficiency.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a fixed amount of resources.

Opportunity Cost

The price paid for not selecting the immediate alternative choice while deciding.