Discretionary Financing Needs Implies

question 21

Multiple Choice

Discretionary financing needs implies

• A) that management may choose between various forms of debt and equity.
• B) that the purchases being financed are optional rather than necessary.
• C) that management has considerable discretion in how to dispose of retained earnings.
• D) that management may choose between debt, new equity or retained earnings.

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Definitions:

Consumer Credit

A type of personal loan provided to individuals to purchase goods and services, repayable over time with interest.

Consumer Protection Legislation

Laws designed to protect the rights and interests of consumers by ensuring fairness and honesty in the marketplace.

Butchers

Professionals specialized in cutting, trimming, and preparing meat for sale or consumption.

Manufacturing Defects

Flaws in a product resulting from the manufacturing process that make it dangerous or unfit for its intended use.