As an Alternative to Selling Shares of Stock as a Means

question 185

Multiple Choice

As an alternative to selling shares of stock as a means of raising funds, a large company could, instead,

• A)invest in physical capital.
• B)use equity finance.
• C)sell bonds.
• D)purchase bonds.

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Definitions:

LIFO

Last-In, First-Out, an inventory valuation method where the most recently acquired items are recorded as sold first.

Retail Inventory Method

An accounting method used to estimate inventory cost for retail businesses by applying a constant gross margin percentage.

Gross Profit Ratio

A financial metric that measures a company's gross profit as a percentage of its revenues, indicating efficiency in using labor and supplies.

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any cost associated with the sale or disposal of the item.