A Firm Can Be Viewed as

question 5

Multiple Choice

A firm can be viewed as

• A) a portfolio of individual projects, each with its own risks, cost of capital, and returns.
• B) a collection of equity shares comprising it.
• C) a collection of debt instruments financing it.
• D) a portfolio of all individual projects in the industry, each with its own risks, cost of capital, and returns.

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Definitions:

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Promisee

The party in a contract who is to receive the benefit or performance specified in the agreement.