The Pecking Order Theory Says That Instead of Trying to Achieve

question 61

True/False

The pecking order theory says that instead of trying to achieve a specified target capital structure, firms use the cheapest form of capital available at any given time.

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Definitions:

Domestic Fuel

Fuels used for household purposes, such as cooking, heating, or electricity generation, which include natural gas, coal, and biofuel.

Net Energy Ratio

A measure comparing the amount of energy delivered by a system to the amount of energy used to build, maintain, and operate the system.

Agriculture Sector

The segment of the economy that is involved in the production of crops and livestock.

Net Energy

The amount of usable energy available from a resource after subtracting the energy expended to obtain, process, and distribute that resource.